fetus has surplus income of R200 000 per annum. He wants to invest this in a high risk fund that will grow at a rate of 14% per annum. He will increase the instalments by 5% per annum and the investment is for a period of 20 years. After 20 years the value of his investment will be
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- William Jack and Sophia Rose are planning on their first child education. If they expect that college will cost RM150,000 per year in 18 years, calculate how much should the couple begin depositing annually at the end of each of the next 18 years to accumulate enough funds to pay one year of tuition 18 years from now. Assume they can earn a 6% annual rate of return on their investment.You have invested 100per month@ 10% per annum in an endowment policy with liberty. After a period of two years you decide to surrender the policy. What is your expected payout?Jeff has to make a decision on one of the following options and has asked for your help in terms of a payout from his trust fund: he can receive a total lump sum payout of R2 150 000 today, which can be invested and earn 4.5% per annum compounded annually or receive an annual payment of R225 000 per year for 14 years which he can invest at the same rate of return. He can invest the money and receve an interest rate of 6.9% per quarter compounded quarterly. Evaluate each option on a present value basis and advise him on which is the best option to take.
- Thomas Taylor plans to invest $24,300 a year at the end of each year for the next seven years in an investment that will pay him a rate of return of 9.1 percent. How much money will Thomas have at the end of seven years? (Round factor values to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25.) Future value of investment $Alexander will take a trip using $5500 of his investment funds that return 8% per year. To pay for the trip, he will also get a loan of $10000 at 6.5% per year interest over 6 years to cover the estimated costs. What is the WACC?Jorge is considering an investment that will pay $4,650 a year for five years, starting one year from today. What is the maximum amount he should pay for this investment if he desires a rate of return of 9.0 percent
- Paolo is considering purchasing a Sunlife Capital investment. Paolo will receive P1,000 every three months for the next two years if he purchases the investment. He would make the first P1,000 payment as soon as he purchases the investment. How much should Paolo be willing to pay for this investment if his required rate of return is 16%? * P1,345.60 P10,764.80 P7,002.05 P1,368.57You have been offered an investment in Brian, Jesse, and Lisa. Each investment pays $1,000 at the end of 3 years and $80 at the end of the next 3 years. Based on risk, Brian's investment demands a 12% rate on return, Jesse's and 8% return, and Lisa's 6% rate of return. Determine the value of each investment.Sally Medavoy will invest $8,000 a year for 20 years in a fund that will earn 6% annual interest. If the first payment into the fund occurs today, what amount will be in the fund in 20 years? If the first payment occurs at year-end, what amount will be in the fund in 20 years?
- Ralph has an investment worth $264,289.32. The investment will make a special payment of X to Ralph in 2 years from today. The investment also will make regular, fixed annual payments of $67,000.00 to Ralph with the first of these payments made to Ralph in 1 year from today and the last of these annual payments made to Ralph in 5 years from today. The expected return for the investment is 11 percent per year. What is X, the amount of the special payment that will be made to Ralph in 2 years? O $16,664.22 (plus or minus 10 dollars) O $20,531.99 (plus or minus 10 dollars) O $12,184.74 (plus or minus 10 dollars) O $74,370.00 (plus or minus 10 dollars) O none of the answers are within 10 dollars of the correct answerAll is expected to invest an amount of 50,000 AED per year from the end of his second year of working . He will invest for 4 years . After which he will increase his investment by 10 % per year for another 4 years . The interest rate is fixed at 12 % per year . What is the present worth of his investment ?Anuonyam plans to deposit GH¢80 in an account at the end of each of the next 20 years. If the account earns 17%, how much will be in the account at the end of the 20years? Once attends church once in a year during the watch night and uses the occasion to pay his tithe of GH¢50. Assuming his tithe account in Heaven grows at the rate of 24% what is the PV of his investment if he lives for the next 20 years. Smart heard about the Ghana Govt’s ‘Smart Borrowing’ concept and borrowed GH¢15,000 to have a successful wedding and pledged his wife & future uncertain children as collateral security. He wants to pay off the loan in 12 monthly instalments otherwise the bank will come for his wife & children born to them since they were pledged as collateral for the loan. What should the monthly repayments be if the annual interest rate is 18%?
