9) If you have $1,000 today and want to invest it at 7% per year, how much will you have after 12 years? A) $3,863.49 B) $2,252.19 C) $1,070.00 D) none of the above
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9) If you have $1,000 today and want to invest it at 7% per year, how much will you have after 12 years? A) $3,863.49 B) $2,252.19 C) $1,070.00 D) none of the above
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- If you invest $11,000 today, how much will you have in each of the following scenarios? (Click here to see present value and future value tables) A. 10 years at 8% B. 8 years at 12% C. 15 years at 15% D. 18 years at 5%Suppose you are offered an investment opportunity that will pay $2,500 in five years if you invest $2,000 today. What is the implied rate of return? A) 4.56% B) 4.00% C) 5.00% D) 3.62% E)25.00%You have a chance to buy an annuity that pays $25,000 at the beginning of each year for 10 years. You could earn 8.5% on your money in other investments with equal risk. What is the most you should pay for the annuity? You are not required to show calculations but you must list the inputs used such as N, PV, FV, etc. O $346,484.41 O $177,976.57 O $164,033.70
- 4. If you invest $10,000 today at an interest rate of 7% for 5 years, what is the present value of your investment? A) $7,957.62 B) $8,000 C) $10,000 D) $7,632.37 Show Calculation here:6. You are considering an investment that will pay you $1,000 in one year, $2,mm in two years, and $3,000 in three years. If you want to earn 10% on yourmoney, how much would you be willing to pay?You have $13,900, you decided to invest it in an investment plan that pay you 13% interest for the next 14 years, after which you want to invest your money for the next 6 years in a safer investment plan that pays only 5%. How much will you have at the end of the 20 years? Select one: a.$57,297.50 b.$103,097.70 C.$7,589.40 d.$89,512.20
- Suppose you are going to invest $11,000 per year for six years. The appropriate interest rate is 9 percent. What is the future value if the payments are made on the last day of the year? What if the payments are made on the first day of the year? a) $82,756.68; $90,204.78 b) $90,204.78; $82,756.68 c) $49,345.10; $53,786.16 d) $53,786.16; $49,345.10Suppose you wish to have $11,000 in 13 years. Use the present value formula to find how much you should invest now (in $) at 6% interest compounded semiannually in order to meet your goal. (Round your answer to the nearest cent.) 5157.2295. In eighteen years, you require an annuity stream of income that will pay out $100,000 per year for 6 years. You wish to create this annuity stream by putting away a single lump sum today. If your investments will make an average of 7% per year in interest, how much do you need to invest today? (draw the cash flow diagram to help with your calculation)
- You plan on saving $5,200 this year, nothing next year, and $7,500 the following year. You will deposit these amounts into your investment account at the end of each year. What will your investment account be worth at the end of year three if you can earn 8.5 percent on your funds? $13,528.12 $13,621.57 $13,907.11 14,526.5026) An investor is considering the following opportunity: He will put capital into a start-up company today. He will not receive any cash flows from the investment until end of the 5th year. At that point, he will receive 10.85 years of $20,000.00 per year. If his discount rate on this investment is 18.92%, what is the value of this opportunity today?Your investment advisor wants you to purchase an annuity that will pay you $25,000 per year for 10 years. If you require a 7% return, what is the most you should pay for this investment? Group of answer choices $201,000 $175,590 $225,682 $ 49,179 $250,000