Calculate the annualised rate of return of an investment that, for an initial investment of £1900, produces a single payment of £4120 after 3 years, taxed at the rate of 10%. State your answer as a percentage to 3 significant figures.
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Calculate the annualised rate of
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- Assume that at the beginning of the year, you purchase an investment for $6,300 that pays $130 annual income. Also assume the investment's value has increased to $6,900 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places. Rate of return % b. Is the rate of return a positive or a negative number? Positive NegativeCalculate the annualised rate of return of an investment that, for an initial investment of £ 3100, produces a single payment of £4120 after 3 years, taxed at the rate of 10%. State your answer as a percentage to 3 significant figures.Assume that at the beginning of the year, you purchase an investment for $7,200 that pays $100 annual income. Also assume the investment's value has decreased to $6,800 by the end of the year. (a) What is the rate of return for this investment? (Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places.) Rate of return % (b) Is the rate of return a positive or negative number? Positive O Negative
- An investment pays $200 at the end of Year I. $250 at the beginning* of Year 2. $387 at the end of Year 4. and $500 at the beginning of Year 6. If other investments of equal Mk earn 7.5% annually. what will be this investments present value and future value?ou can assume that all payments are made at the beginning of the period and use "1" for the "type" argument in the formula. A. Suppose you invest $ 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded annually? B B. Suppose you invest $ 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded quarterly? 4 5 6 27 28 29 C. Suppose you invest St $ 570 monthly. What is the future value of the investment in 29 years, if interest at 5% is compounded monthly? Question 1 Question 2 + Ready Accessibility: Investigate MAR 17 A W +Suppose we invest £100,000 at a semi-annually compounded interest rate of 6% for 1 year. What are the gross and net returns? Do the same if this was a monthly compounded rate and a continuously compounded rate. Compare the three net returns to the interest rate. Can you explain the ordering of these 4 quantities?
- An investment will pay you $4,611.9 in 3 years if you pay $1,376.68 today. What is the implied rate of return? (Convert to a percent. Round to 2 decimal places.)Assume that time is measured in years. Calculate the total present value at time 0 of a payment of £257 paid at time 4 and a payment of £67 paid at time 12, using an interest rate of 5% per annum effective.(a)An investment is offered whereby £1000 is invested immediately, £2000 is invested in exactly threeyears’ time followed by a further investment of £3000 after a further threeyears. The investment is due to return £10000 in ten years’ from now. (i)Write down the equation of valuefor the investment (ii) Estimatethe yield on the investment. (b) (i)Calculate the present value, at a rate of interest of 6.5% per annum effective, of anannuity where £5000 is paidat the end of the first year, £4,800 is paid at the end ofthe second year, £4,600 is paid at the end of the third year and so on, with paymentsdecreasing by £200 per annum until the payment stream ends afterof 10 years. (ii)What would the payments be for an investment with the same present value, with equal payments every month?
- An investment will provide after-tax revenue of $22,336 per year for 7 years. What is the present value of this revenue stream assuming a discount rate of 5.25%?Calculate the future value of an investment if the annual interest rate is 9%, number of payments is 30, and each payment of $1000 is made at the end of the year. A. $102,893 B. $136,308 C. $108,212 O D. $98,234Evaluate the net present value of following streams of income: a. $1000 per year at an interest rate of 5% in perpetuity. b. $1000 per year at an interest rate of 5% in perpetuity. c. $1 million per year at an interest rate of 5% in perpetuity. |d. $1 million per year in perpetuity, but not beginning until year t=5 at an interest rate of 15%.
