You invest $ 500 today and receive $ 750 at the end of 5 years. a. DETERMINE the internal rate of return, using hand interpolation. Write answer to 2 decimal places.
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A: Given: Amount = 1,000 Years = 5
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A: The Present Value of a lump sum: The Present Value of a lump sum can be computed with the formula:
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A: Interest is an amount which is received on the deposited amount for the period. It increases the…
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A: The number of years taken is calculated using the log function.
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A: in this we have to calculate present value of both option and see which option give better value.
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A: The formula used as follows: Present value=Future value1+innt
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A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
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A: Given, The amount invested today is $2000 The rate of interest is 7%
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A: Given,Money Received after 2 years and Present Value of the investment for 6 years (PV) =…
Q: There is an investor stating they will pay out $84,000 at the end of 4 years. In order to invest…
A: Value at end of 4 years = 84000 N = 4 Deposit = 10,000 Annual Rate of Return using excel = ?
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A: The given problem can be solved using FV function in excel. FV function computes amount required in…
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A: Here we will use the FV function in excel. The syntax is: FV (rate, nper, pmt) where rate = interest…
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Q: You expect to receive $27,000 at graduation in two years. You plan on investing it at 9.5 percent…
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A: Since only two accounts are offered rather than three accounts. So, the best choice among the two…
Q: l invest $500 per quarter for my retirement at 7.3% compounding quarterly for 32 years. What will be…
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Q: You have $76,000 in your account that you want to grow to triple that amount in 25 years. What…
A: Answer: Following information are given: Present value = $76,000 Time = 25 years Future value = 3…
Q: You make a one-time investment of $500 and leave it for 5 years, earning an annual interest rate of…
A: Using excel FV function
Q: I will invest $500 per month at the beginning of each month for my retirement at 7.3% compounding…
A: The given problem can be solved using FV function in excel. FV function computes amount required in…
Q: Assume today is January 1 and you plan to invest $4,000 today in an account earning interest of 6%…
A: The future value represents a sum of money to be received or paid at some time in the future. It…
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A: Amount required $3,000,000 Time is 40 years Interest rate is 8%
Q: There is an investor stating they will pay out $84,000 at the end of 4 years. In order to invest…
A: Future value = $ 84000 Period = 4 Years Deposit amount = $ 10,000
Q: If you were to invest $2000 today and in return receive $450 anually for 6 years, what is your…
A: N=6 PMT=450 PV=2000 I=? 2000=450/(1+I)+450/(1+I)^2........+450/(1+I)^6
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A: The given problem can be solved using FV function in excel. FV function computes amount required in…
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A: Present Value is the current value of all the cash flows which is to be received in the future which…
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A: Given information: Purchase price = $33,000 Loan = $33,000 -20%×$33,000 = $26,400 Term = 5 years…
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- Find the interest earned on $5,750 deposited into a savings account for 3 1/2 years at an annual interest rate of 4 1/2% a. What formula should be used? b. What are you trying to find and what variable does it represent in the formula? c. Solve the problem showing all of your work (must show all steps!!) d. Interpet your answer using a complete sentence You may use the box below to upoload a picture of your written explanation or type it out in the box. Use the "mountain" button to add pictures.For TVM calculator: Write each known variable’s value as it appears in the calculator and use a question mark for the missing variable. Then, in the space provided write the missing variable’s value, as it appears in the calculator. Finally, write your final answer in context, with units, as a complete sentence. Greg has been making regular monthly payments of $425 into an account for 15 years, and he now has $96,000. What is the annual interest rate of his account? N=180 I= ? PV=96,000 PMT= 425 FV= ? P/Y= 12 C/Y=12 Missing Variable Value __________________ Context Sentence:Use the TVM Solver to answer the following questions. Write each known variable's value as it appears in the calculator and use a question mark for the missing variable. Then, in the space provided write the missing variable's value, as it appears in the calculator. Finally, write your final answer in context, with units, as a complete sentence. Round to three decimals or by context. 1. Thomas plans to invest $3,400 into a money market account with a 6% annual interest rate compounded weekly. How much will be in the account after 9 years? Variable Value N = 1% = PV = PMT= FV = PY = CY = What is the Missing Variable Unit? Write a Context Sentence:
- For TVM calculator: Write each known variable’s value as it appears in the calculator and use a question mark for the missing variable. Then, in the space provided write the missing variable’s value, as it appears in the calculator. Finally, write your final answer in context, with units, as a complete sentence. Herman is looking to invest $5,000 in an account that earns 3.7% annual interest compounded semi-annually. If Herman plans to regularly deposit semi-annual payments of $1,575 into the account, how much is the account worth after 30 years? N=60 I= 3.7 PV=5000 PMT= 1575 FV= ? P/Y=2 C/Y=2 Missing Variable Value __________________ Context Sentence:There is an investor stating they will pay out $84,000 at the end of 4 years. In order to invest into the opportunity, you'll need to make a deposit of $10,000 to thier indicated bank account. What is the average annaul return rate. Use excel functions to indicate your steps.Part B: Calculate FV or PV for the following questions and put all in the format uploaded in the Moodle: (Put any number you want in the empty places and then calculate) 1) Mr. Ali deposited OMR today into a security that pays him ..% interest ...... compounded. He wanted to know how much money he will have at the end of . . years Calculate the amount.
- Write each known variable’s value as it appears in the calculator and use a question mark for the missing variable. Then, in the space provided write the missing variable’s value, as it appears in the calculator. Finally, write your final answer in context, with units, as a complete sentence. Use a TVM Solver is necessary. Daniel plans on making monthly payments into an account that earns 3.5% compounded monthly. If he wants $15,000 in 20 years, what do his payments need to be? N _____________ I%_____________ Missing Variable Value_______________________ PV_____________ PMT____________ Context Sentence: FV______________ P/Y_____________ C/Y_____________RESOLVE THIS PROBLEM IN DIGITAL FORMAT (NOT HANDWRITTEN) Solve the following problem step by step, include the formulas you use and the development please - A person bought a car for which he paid $ 9500 on January 1 and sells it on June 6 of the following year for $ 16,700. What was the return in% that the investment gave?Use Goal seek on the loan amount of $825,000. You would like the monthlypayment to be $4500.00. Find a solution for new loan amount, term, and Interestrate. Do not overwrite the Existing data on D3. Hint: Use Cancel when goal seekfinds a solution. Write the solution in the space provided on a spreadsheet.
- Using Excel, create a table that shows the relationship between the interestearned and the amount deposited, as shown. we will first create the dollar amount column and the interest row, as shown . Next we will type into cell B3 the formula = $A3*B$2. We can now use the Fill command to copy the formula in other cells, resulting in the table as shown. Note that the dollar sign before A3 means column A is to remain unchanged in the calculations when the formula is copied into other cells. Also note that the dollar sign before 2 means that row 2 is to remain unchanged in calculations when the Fill command is used.Part B: Using Time line Method and Equation, calculate FV or PV for the following questions and put all in the format uploaded in the Moodle: (Put any number you want in the empty places and then calculate). 1) Mr. Ali deposited OMR compounded. He wanted to know how much money he will have at the end of years Calculate the amount. today into a security that pays him .....% interest 2) How much money has to be invested today in a security that promises to pay Omani Riyals at the end of compounded per annum. years. Assume that you can earn % interestFor TVM calculator: Write each known variable’s value as it appears in the calculator and use a question mark for the missing variable. Then, in the space provided write the missing variable’s value, as it appears in the calculator. Finally, write your final answer in context, with units, as a complete sentence. Patricia deposits $1,000 into an account that earns 4.9% compounded monthly and plans to make monthly payments of $170 into the account. How long must she invest until she has $35,000? N=? I= 4.9 PV=1,000 PMT=170 FV= 35,000 P/Y=12 C/Y=12 Missing Variable Value __________________ Context Sentence: