How much will your investment be worth eight years from now? Can the excel and calculator solutions be provided?

Q: You are planning to deposit $4,200 into a financial investment that will pay annual interest rate of…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: You are scheduled to receive $19,000 in two years. When you receive it, you will invest it for six…

A: Present value means today's value of the future value of money. It means that the present time…

Q: You plan to save $250 a month for the next 24 years and hope to earn an average rate of return of…

A: Future value is the sum of money invested over a period of time under the premise that the…

Q: You expect to receive $26,000 at graduation in two years. You plan on investing it at 9.25 percent…

A: Present Value = $26,000  Future Value = $161,000  Rate (r) = 9.25%

Q: account

A: Introduction: Investments are made by depositing a certain sum of money in the account. At the end…

Q: Your friend plans to invest $1,000 per month into an account expected to have an effective annual…

A: Here, EAR is 6.2% Monthly payment (PMT) is $1,000 Required Amount (FV) is $100,000

Q: Consider an investment which pays $2,000 at the end of year 1, year 2, and year 3. In year 4, the…

A: Terminal value at end of year 3 = Cash flow in year 4  / (Interest rate - growth rate) = $5000 / (7%…

Q: t be until this occurs?

A: To calculate the years will it be to recieve $ 60,000 from $9,000 at 10% , the formual to be applied…

Q: You expect to receive $15,000 at graduation in three years. You plan on investing it at 13% until…

A: The concept of time value of money will be used here.As per the concept of time value of money the…

Q: If you invest $15,000 in a long-term venture, you will receive $1,100 per year forever. The first…

A: Initial cost (I) = $15000 CF1 = $1100 forever starting after 2 years CF2 = $500 forever every 6…

Q: Suppose you invest $3,000 today and receive $10,000 in 25 years. a. What is the internal rate of…

A: IRRIt is a capital budgeting technique of a discounted cash flow that gives a rate of return is that…

Q: You have 45,589.25 in a brokerage and you to deposit an additional 5,000 at the end of every future…

A: Time value of money concept will be applied here. Money deposited in an account grows as the amount…

Q: You are scheduled to receive Rs. 360,000 in two years. When you receive it, you will invest it for…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: An investment offers to pay you $8,000 a year for five years. If it costs $28,840, what will be your…

A: YEARS 5 PMT (MONTHLY DEPOSIT) 8000 PRESENT VALUE $28,840 FUTURE VALUE $0

Q: You have $3000 today, and you expect to receive $1000 at the end of the next three years,…

A: Present Value = pv = $3000Payment = p = $1000Time = t = 3Interest Rate = r = 8%

Q: An investment offers $6,300 per year, with the first payment occurring one year from now. The…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: You have $67,046.95 in a brokerage account, and you plan to deposit an additional $3,000 at the end…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: As an investor, you have an opportunity to make an investment in real estate costing $100,000 today.…

A: The present value (PV) is $100,000. The monthly income (PMT) is $650. The period is 20 years and the…

Q: You invest $2500 and in return receive two payments of $1800— one at the end of 2 years and the…

A: Rate of return is the rate earned on investment. It helps in making decisions about the projects…

Q: You will receive $4,000 three years from now. The discount rate is 10 percent.  a) What is the…

A: In the given question we need to compute the value of investment after two years and one year from…

Q: You buy a new piece of equipment for $11,778, and receive a cash inflow of $2,000 per year for 10…

A: Initial Investment is $11,778 Cash Inflow per year = $2,000 Time Period = 10 Years

Q: If you invest $8,300 per period for the following number of periods, how much would you have…

A: Future value, which is dependent on the assumption of compound interest or investment growth, is the…

Q: You expect to receive $10,000 in two years. You plan on investing it at 9 percent until you have…

A: Amount invested = a = $10,000 Interest rate = r = 9% Future value = $75,000 Time before investment =…

Q: An investment offers to pay you $10,000 a year for four years. If it costs $27,980, what will be…

A: given present value    = 27980 future value a year…

Q: If you invest $10,000 per year at the end of each year for 3 years at an 5.5% rate of return, you…

A: Future Value of anuity = P * [ { (1 + r )n -1 } /r ] where, P =  periodic payment r = interest rate…

Q: If the guaran

A: The amount to be paid for the policy can be computed as follows :

Q: you expect to receive 10,000 at graduation in two years. you plan on investing it at 11% until you…

A: Future amount can be calculated as follows:= Present Value * (1 + rate)^ periods

Q: An investment pays you $100 at the end of each of the next 3 years. The investment will then pay you…

A: Time value of money is a concept that deals with calculating the actual worth of money at present…

Q: etna is offering customers who invest $10,000 with them today a payment of $1,500 every 1.5 years in…

A: Concept, first we will calculate the effective rate for the 1.5 year period which is nothing buy the…

Q: ou are trying to value the following investment opportunity: The investment will cost you $5663…

A: NPV of the perpetuity is determined when there is a constant growth in future cash flow for the…

Q: You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million…

A: Present value is the current value of a future amount that is to be received or paid out.     Future…

Q: 22) An investment pays you $5,000 at the end of each of the next five years. Your plan is to invest…

A: The amount after 5 years can be computed using the future value formula.

Q: Consider a project in which you have to invest $15,000 today and you will receive $24847 in one…

A: Future Value = $24,847Present Value = $15,000Number of years (n) = 1We need to calculate the…

Q: You have $51, 854.38 in a brokerage account, and you plan to deposit an additional $3,000 at the end…

A: The time value of money is a concept in finance that takes into account the effects of compounding…

Q: You will receive $5,000 in six years.  When you receive it, you will invest it for 7 more years at…

A: The FV of an investment refers to the combined value of the cash flows of the investment at a…

Q: You are scheduled to receive $27,000 in two years. When you receive it, you will invest it for 7…

A: Future value is that amount which will be require to paid at some specified period of time. It…

Q: If you invest $5,000 today, you will receive $1,000 in a year, $1,500 each in year 2 and year 3, and…

A: Calculate the net present value as follows:

Q: An investment opportunity requires a payment of $620 for 12 years, starting a year from today. If…

A: Present value : The financial concept used to establish the current valuation of future cash flows…

Q: You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that…

A: Present value defines the current value of an asset that will be present at sone futrue date…

Q: A. You are offered an investment that will pay you $200 in one year, $400 the next year, $600 the…

A: The present value is today's value of future cash flows. It represents the discounted value of cash…

Q: You are looking to invest your savings and want to earn a 10% annualized return. You can choose from…

A: The idea of present value, in finance, is to determine the worth of future cash flows or a series of…

Q: You would like to provide $145,000 a year forever for your heirs. How much money must you deposit…

A: The perpetuity is a stream of cash flow which will be continuing forever and it will pay a certain…

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.