An investor is considering an investment that will pay $2,280 at the end of each year for the next 10 years. He expects to earn a return of 12 percent on his investment, compounded annually. Required: a. How much should he pay today for the investment? b. How much should he pay if the investment returns are received at the beginning of each year? (For all requirements, do not round intermediate calculations and round your final answers to the nearest whole dollar amount.) a. Present value of ordinary annuity b. Present value of annuity due
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- An investor is considering an investment that will pay $2,170 at the end of each year for the next 10 years. He expects to earn a return of 12 percent on his investment, compounded annually. Required: a. How much should he pay today for the investment? b. How much should he pay if the investment returns are received at the beginning of each year? (For all requirements, do not round intermediate calculations and round your final answers to the nearest whole dollar amount.) a. Present value of ordinary annuity b. Present value of annuity dueOn January 1, 2021, you are considering making an investment that will pay 3 annual payments of 12,000. The first payment is not expected until December 31, 2024. You are eager to earn 3%. What is the present value of the investment on January 1, 2021. What are the present values use in the equation.An investor is considering an investment that will pay $2,150 at the end of each year for the next 10 years. He expects to earn a return of 12 percent on his investment, compounded annually. How much should he pay today for the investment? How much should he pay if the investment returns are received at the beginning of each year?
- If you invest $17,500 today, how much will you have in each of the following instances? Use Appendix A as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. In 7 years at 8 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Future value b. In 18 years at 7 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Future value Future value Val HOME c. In 25 years at 6 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) 1 ARNE Inil STA Boll Com te doen Monta Panta BBELL Aaron Alfal amphenie dit ou Munimin is magna. Menin that dimin ilmais mmmmm ana multzal mmmmmYou are told that if you invest $11,600 per year for 18 years (all payments made at the beginning of each year) you will have accumulated $375,000 at the end of the period. What annual rate of return is the investment offering?If you invest $17,500 today, how much will you have in each of the following instances? Use Appendix A as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. In 7 years at 8 percent? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Future value b. In 18 years at 7 percent? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Future value c. In 25 years at 6 percent? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Future value d. In 20 years at 6 percent (compounded semiannually)? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Future value
- You have just received a windfall from an investment you made in a friend's business. She will be paying you $ 45236 at the end of this year, $ 90472 at the end of next year, and $ 135708 at the end of the year after that (three years from today). The interest rate is 3.1 % per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)?A. Jug pays $9,500 for an investment that pays an annual dividend of $500. The investment has a face value of 15,000 payable on the maturity date. If Jug holds the investment until its maturity date in 2023 (3 years' times), what will be his holding return (%) on investment? What will be the annualized return on his investment? (Show your calculations) Use financial calculator where applicable6. An investor is considering an investment that will pay $2,150 at the end of each year for the next 10 years. He expects to earn an annual return of 18 percent on his investment. How much should he pay today for the investment? How much should he pay if the investment returns are paid at the beginning of each year?
- Your insurance agent is trying to sell you an annuity that costs $50,000 today. By buying this annuity, your agent promises that you will receive payments of $260 a month for the next 25 years. What is the rate of return on this investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)An investor requires an annual (year-end) income of $15,000 in perpetuity. Assuming a fixed rate of interest of 4% each year, and ignoring administrative charges, what is the sum required now to purchase the annuity? Give your answer to the nearest $. 2. A saver invests $1,500 now and at the end of each of the next 4 years. If the interest rate is 6%, what is the present value (to 2 decimal places) of this investment? (Use tables)An investor wants to save money to purchase real estate. He buys an annuity with quarterly payments that earn 5.5% interest, compounded quarterly. Payments will be made at the end of each quarter. Find the total value of the annuity in 18 years if each quarterly payment is $163. Do not round any intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas. $ X A BH