Consider the following investment: $1,000 placed into a fund at the beginning of every quarter at an annual rate of interest of 15% compounded continuously. How long before the value of the fund is $1 million? (Round to the nearest year)
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Hi there,
I am stuck on this
Consider the following investment: $1,000 placed into a fund at the beginning of every
quarter at an annual rate of interest of 15% compounded continuously. How long before
the value of the fund is $1 million? (Round to the nearest year)
Step by step
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- Hi, How do i solve this corporate finance problem using a formula or financial calculator. The present value of an annuity making annual payments of $3,200 starting 8 years from today is$13,465.99. If the fund earns 10.5%/year (effective), how many annual payments (in whole years) of$3,200 can be made?Suppose you have an opportunity to invest in a fund that pays 12% interest compounded annually. Today, you invest $10,000 into this fund. Three years later(EOY 3), you borrow $5,000 from a local bank at 10% annualinterest and invest it in the fund. Two years later (EOY 5), you withdraw enough money from the fund to repay the bank loan and all interest due on it. Three years from this withdrawal (EOY 8) you start taking $2,000 per year out of the fund. After five withdrawals of $2,000, you have withdrawn your original $10,000. The amount remaining in the fund is earned interest. How much remains?I NEED TO SOLVE THİS USIİNG EXCEL Suppose you invest into Fund X for 15 months with a monthly interest rate of 8%. Each month you pay $260 calculate the ending value in the red shaded area. 1 Suppose you found the Ending Value. You would like to observe the Ending Value for various monthly payments which are $100, $200, $300, and $400 Create one-way data table to see the annual payments for the interest rates in green shaded area. 2 4 5 INVESTMENTS Years Left 6 Fund X Monthly Payment ($260) Interest Rate Ending Value 15 8% 7 8 (100.00) (200.00) (300.00) (400.00) 10 $ 11 $ 12 $
- Assume that investing $500 in a fund today will give you a return of $530 a year later. On the other hand, your bank can give you a rate of interest of 7.5% compounded annually. Will you choose to invest in the fund?Suppose you have the opportunity to invest in a fund that pays 12% interest compounded annually. Today, you invest $10,000 into this fund. Three years later (EOY 3), you borrow $5000 from a local bank at 10% annual interest and invest it in a fund. Two years later (EOY 5) you withdraw enough money from the fund to repay the bank load and all interest due on it. Three years from this withdrawal (EOY 8) you start taking $2,000 per year out of the fund. After five withdrawals of $2,000, you have withdrawn your original $10,000. The amount remaining in the fund is earned interest. How much remains?4. A young man has decided to go into the business at the age of 25, he deposits a certain amount and will increase the deposit by 50,000 each year until the age of 35 to reach 30M on that age. If the fund can be invested at 15% compounded annually, how much should his initial investment be? DRAW THE CASH FLOW DIAGRAM
- Suppose that you have an opportunity to invest in a fund that pays 12% interest compoundedannually. Today, you invest P10,000 into this fund. Three years later, you borrow P5,000 from alocal bank at 10% effective annual interest and invest it in the fund. Two years later, you withdrawenough money from the fund to repay the bank loan and all interest due on it. Three years laterfrom this withdrawal you start taking P2,000 per year for 5 years out of the fund. After 5 years, youhave withdrawn your original P10,000. The amount remaining in the fund is earned interest. Howmuch remains?Suppose you have an opportunity to invest in a fund that pays 13% interest compounded annually. Today, you invest $5 comma 000 into this fund. Three years later (EOY 3), you borrow $2 comma 500 from a local bank at 8% annual interest and invest it in the fund. Two years later (EOY 5), you withdraw enough money from the fund to repay the bank loan and all interest due on it. Three years from this withdrawal (EOY 8) you start taking $1 comma 000 per year out of the fund. After five withdrawals of $1 comma 000, you have withdrawn your original $5 comma 000. The amount remaining in the fund is earned interest. How much remains?You decide to contribute to a mutual fund that averages 3.6% return per year. If you contribute $600 quarterly. Round all answers to the nearest cent as needed. a) How much will be in the account after 20 years? $ b) How much of this money did you deposit? $ c) How much of this money is interest earned? $ Submit Question Question 3
- Find the required value for each problem. Show the formula used and the counts for each problem.1. Jane Morrison is planning to invest $ 25,000 today in a mutual fund that provides a yield of 8% compounded annually. What will the investment be worth in ten years? 2. Ramón Rivera is investing $ 7,500 in a CD from a bank that pays 6% interest compounded annually. How much will he have earned at the end of five years? 3. María Lebrón is considering an investment that pays 7.6% interest compounded annually. How much would she have to invest today if she expects this investment to bring her $ 25,000 in six years? 4. Elizabeth Terrier wants to accumulate $ 12,000 after 12 years. If the annual compound interest rate paid by her savings account is 9.25%, how much money would he have to deposit in her account today to reach her goal? 5. Carolina Carlo needs to decide whether she accepts a $ 17,000 bond today or waits two years and receives $ 20,100. The CAGR she could invest in is 6%. What…Suppose you have a financial investment opportunity for which if you invest $2,000 today, you will receive $100 per year for 3 years plus $2,500 in the third year. Is this worthwhile in financial terms if the interest rate on the best alternative use of the funds is 10% How would I plug this into a finacial calculator? usin N, I/Y, PV, PMT,FVAn investment promises to pay $5,000 at the end of each year for the next four years and $3,000 at the end of each year for years 5 through 8. Use Table II and Table IV or a financial calculator to answer the questions. Round your answers to the nearest cent. If you require a 9 percent rate of return on an investment of this sort, what is the maximum amount you would pay for this investment?$ Assuming that the payments are received at the beginning of each year, what is the maximum amount you would pay for this investment, given a 9 percent required rate of return?$