A certain investment promises to pay you $2,500 per year forever with the first payment starting 5 years from now. If you can earn a 5% return on similar investments, what's the most you would pay for this investment today?
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7) A certain investment promises to pay you $2,500 per year forever with the first payment starting 5 years from now. If you can earn a 5% return on similar investments, what's the most you would pay for this investment today?
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- You are offered an investment that requires you to put up $5,000 today in exchange for $12,000 10 years from now. What is the annual rate of return on this investment?You have $1725 to invest. You know that a particular investment will double your money in five years. How much will you have in 10 years if you invest in this investment, assuming that the annual rate of return is guaranteed for the time period? Cevap:You invest in a project that is expected to pay you $960 every year forever. If the first payment to you occurs 3 years from today and the discount rate is 3.8%, then what is its value today (Round to the nearest dollar).
- Your investment advisor wants you to purchase an annuity that will pay you $81,491 after 10 years. If you require a 7.8% return, what is the most you should pay for this investment? (Keep 2 decimal places)An investment pays you $100 at the end of each of the next 3 years. The investment will then pay you $200 at the end of year 4, $300 at the end of year 5, and $500 at the end of year 6. If the rate of interest earned on the investment is 8%, what is the present value of this investment? What is its future value? How do you solve this with excel?Consider an investment which pays $2,000 at the end of year 1, year 2, and year 3. In year 4, the investment will pay $5,000 and this payment will grow by 4.3% each year forever. If the appropriate interest rate is 7%, what is this investment worth today?
- You have $1725 to invest. You know that a particular investment will double your money in five years. How much will you have in 10 years if you invest in this investment, assuming that the annual rate of return is guaranteed for the time period?● An investment will provide you with $100 at the end of each year for the next 10 years. What is the present value of that annuity if the discount rate is 8% annually? • What is the present value of the above if the payments are received at the beginning of each year? • If you deposit those payments into an account earning 8%, what will the future value be in 10 years? • What will the future value be if you open the account with $1,000 today, and then make the $100 deposits at the end of each year?How much money should you be willing to pay now for a guaranteed $500 per year for 10 years starting next year, at a rate of return of 15% per year?
- Your investment advisor wants you to purchase an annuity that will pay you $35,000 per year for 10 years. If you require a 9% return, what is the most you should pay for this investment?A new investment opportunity for you is an annuity that pays $550 at the END of each year for 3 years. You could earn a rate of return of 5.5% per year on your money in other, similar investments. What is the most you should pay for the annuity? Express your answer in dollars and cents.You have an investment opportunity that promises to pay you $18, 499 in four years. Suppose the opportunity requires you to invest $15,813 today. What is the interest rate you would earn on this investment?