Your father paid $10,000 (CF at t= 0) for an investment that promises to pay $750 at the end of each of the next 5 years, then an additional lump sum payment of $10,000 at the end of the 5th year. What is the expected rate of return on this investment? a. b. C. d. 6.77% 7.13% 7.50% 7.88% 8.27%
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- If you invest $12,000 today, how much will you have in (for further Instructions on future value in Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at l5% D. 19 years at 18%If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%
- Your father paid $10,000 (CF at t = o) for an investment that promises to pay $575 at the end of each of the next 5 years, then an additional lump sum payment of $13,500 at the end of the 5th year. What is the expected rate of return on this investment? O a. 5.75% Ob. 4.26% O c. 10.37% O d. 11.33% Oe. 11.95%A new investment opportunity for you is an annuity that pays $650 at the beginning of each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity? Select the correct answer. a. $1,903.81 b. $1,885.91 c. $1,850.11 d. $1,832.21 e. $1,868.01Assume that you own an annuity that will pay you $14,000 per year for 12 years, with the first payment being made today. You need money today to start a new business, and your uncle offers to give you $125,000 for the annuity. If you sell it, what rate of return would your uncle earn on his investment? a. 11.20% b. 4.46% c. 4.87% d. 20.01% e. 5.90%
- Your sister paid $10,000 (CF at t = 0) for an investment that promises to pay $750 at the end of each of the next 5 years, then an additional lump sum payment of $10,000 at the end of the 5th year. What is the expected rate of return on this investment? 6.77% 7.13% 7.50% 7.88% 8.27%Your sister paid $10,000 (CF at t = 0) for an investment that promises to pay $750 at the end of each of the next 5 years, then an additional lump sum payment of $9,000 at the end of the 5th year. What is the expected rate of return on this investment? Select the correct answer. a. 8.12% b. 2.12% c. 4.52% d. 3.32% e. 5.72%The four people below have the following investments. Invested Amount Interest Rate Compounding Jerry Elaine $12,300 12% Quarterly 15,300 8 Semiannually George 22,300 7 Annually Kramer 18,300 9 Annually Required: 1-a. Calculate the future value at the end of five years. (EV of $1, PV of $1, FVA of $1, and PVA of $1) 1-b. Who has the greatest investment accumulation? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Calculate the future value at the end of five years. (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) Jerry Elaine George Kramer Future Value
- The four people below have the following investments. Invested Amount Interest Rate Compounding Jerry $11,300 12% Quarterly Elaine 14,300 10 Semiannually George 21,300 6 Annually Kramer 17,300 8 Annually Required:1-a. Calculate the future value at the end of five years. (FV of $1, PV of $1, FVA of $1, and PVA of $1)1-b. Who has the greatest investment accumulation?The four people below have the following investments. Invested Amount Interest Rate Compounding Jerry $ 11,500 12% Quarterly Elaine 14,500 8 Semiannually George 21,500 7 Annually Kramer 17,500 9 Annually Required: 1-a. Calculate the future value at the end of three years. (FV of $1, PV of $1, FVA of $1, and PVA of $1) 1-b. Who has the greatest investment accumulation? ________________________________________________________ I don't understand how to convert the years to months or time periods to be able to work this problemHow much would you be willing to spend for an annuity that pays $2,500 at the end of each year for three years, assuming you could earn 5.5% on other LIET similar investments? Select one: O a. $5,494 O b. $4,783 O c. $6,087 O d. $6,408 O e. $6,745 ہے