it is desired to save $20,000 by depositing $800 every 3 months in an investment that pays 8% coumpounded quarterly. What would be the approximate value of N in years?
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it is desired to save $20,000 by depositing $800 every 3 months in an investment that pays 8% coumpounded quarterly. What would be the approximate value of N in years?
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityIf $5,000 is invested at an annual rate of 6.5% compounded continuously, the future value S at any time t (in years). a. Write the equation for future value. the he n b. What is the amount after 18 months? Round your answer to the nearest cent.Suppose you invest $385 at the end of each of the next eight years. (a) If your opportunity cost rate is 7 % compounded annually, how much will your investment be worth after the last $385 payment is made? (b) What will be the ending amount if the payments are made at the beginning of each year?
- What is the present value of an investment that will pay $1,000 in one year's time, and $1,000 every year after that, when the interest rate is 8%?An investment will pay $25 per year (indefinitely), starting in one year’s time. The annual payments will grow at a rate of 3% per year. If the price of this investment is $200, what is its rate of return?You make an investment into a money market account at time T=0. In year T=5, the value of the money market account will be $5,000. The money market account pays an annual interest of R=6%, and interest is compounded on a quarterly basis. What is the present value of this account?
- What annual rate of return is earned on a $1,000 investment when it grows to $2,700 in eight years?If you want to save $50,000 in 8 years, you will earn 6.5% on your investment. a. How much will your payments be annually? b. Identify N, PV, FV, PMT, and I/R, and the formula used to calculate the payment.What is the value today of receiving a single payment of $81,374 in 4 years if your required rate of return on this investment is 12.22% compounded semi-annually?
- Suppose you have an investment worth $800 and you want it to increase in value by 400%. a) What is the desired future value of the investment? For full marks your answer(s) should be rounded to the nearest dollar. FV = $ 0.00 b) How long will it take the investment to reach the desired future value, if it earns 5.50% compounded semi-annually? Your an be rounded up to the nearest month. Time = 0 years 0 monthsYou wish to have an investment that will bring about $50 000 in tenyears, and the rate of return is 8% per annum. Required:a. In term of time value of money, what is the amount of $50,000 represent?b. How much do you need to invest now if the rate is compounded annually(to the nearest dollar)?c. If you have $50,000 now and put the sum into a bank account that pays5% per year. How much will you have in 8 years if the rate is compounded semiannually, quarterly, monthly and daily (to the nearest dollar)?You invest $10,000 into a money market account that pays interest on a semi-annual basis (e.g., interest is compounded every six months). If the annual interest rate is R=0.08 (e.g., R=8%), how long will you have to wait for your initial investment to double to $20,000?