Joey is considering investing P200,000 in an investment that will have a maturity value of P1,000,000 in 10 years. If the compounding period is quarterly, what is the annual rate of return earned on the investment?" 4% 8% 16% 17%
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- An investor put his money in an investment earning 10 1/2% simple interest rate per annum. If his total investment was P12. 30 million, how much money he will receive at the end of 15 months?You invest $4200 for a period of 7 years. At the end of 7 years your investment has grown to $7200. What is the annual rate of return on this investment? O a. 6.18% b. 10.20% O c. 8.00% O d. 71.43%A. Assume that you have $7500 to invest. You plan to invest it for 10 years at a rate of 7% per year, compounded semiannually. What is the future value (FV) of this investment? B. Assume that you need to accumulate $25,000 by the end of 17 years. You can invest today at a rate of 12% per year, compounded quarterly. At that rate, how much must you invest today (PV) to accumu-late the $25,000? C. Assume that you have $5000 to invest today. At the end of 7 years, you need that $5000 to have grown to $10,000. If you invest at semiannual compounding, what annual rate must
- How much is the present value of your investment if you invest P2,000 semi-annually at the start of every six months for a period of 4 years with interest rate of 21 percent per annum?| 6.You are told that if you invest $10,900 per year for 12 years (all payments made at the end of each year) you will have accumulated $670,000 at the end of the period. What annual rate of return is the investment offering? 29.99% 23.63% 20.63% 26.99% 33.44%Consider an investment which pays $2,000 at the end of year 1, year 2, and year 3. In year 4, the investment will pay $5,000 and this payment will grow by 4.3% each year forever. If the appropriate interest rate is 7%, what is this investment worth today?
- Consider an investment which pays $3,000 at the end of year 1, year 2, and year 3. In year4, the investment will pay $4,000 and this payment will grow by 2% each year forever. If theappropriate interest rate is 9%, what is this investment worth today? (Show Using BA II Plus or By Hand)An investment opportunity promises to pay $5,500.00 per year forever starting ten years from today. Assuming the interest rate of 7%, what should I pay today for this investment? $47,737.65 $58,194.98 $42,956.71 $30,111.39Your company plans to invest $20,000 at the end of each year or years 1 through 5, The company will increase the investment by $5,000 in year 6 and an additional $5,000 in year 7. What is the present value af these investments if the interest rate is 10% per year compounded annually? _______
- 2. Find the rate of interest and final amount resulting from an investment of P800 at 12% simple interest for 1 1/2 years. 3. How long will it take an investor to earn an interest of P450 on P1,000 at 12%?K You have just received a windfall from an investment you made in a friend's business. She will be paying you $41,444 at the end of this year, $82,888 at the end of next year, and $124,332 at the end of the year after that (three years from today). The interest rate is 3.8% per year a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)?11. Calculate the present value of payments of RM15,000 per year for 4 years if the first payment starts at end of the 4th year given annual interest rate of 10 percent. 12. How much should you pay for an investment that will pay you a dividend of RM1, 750 for every quarter indefinitely if money is worth 10 percent per annum compounded quarterly for the following scenarios: i. Just after the dividend has been paid. ii. Just before the dividend is due to be paid.