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A man has two investments, one paying 3% annual interest and the other 4%. The total annual income from the investments is $17,000. If the interest rates were interchanged, the total annual income would be $18,000. Determine the following:
- The amount of each investment.
- Explain the concepts/principles that were considered and the factors that affected the condition of item (a)
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- Answer the following questions correctly and show your Complete Solution. a. 3 1/5% is equivalent to b. Find the actual time and approximate time from October 5, 2020 to June 30, 2021 c. Which of the following are NOT true?I. Principal is the money given or paid invested in the origin dateII. Origin date is a date on which money is paid by the borrower.III. Interest is an amount or earned for the use of the moneyIV. Simple Interest is an interest that is computed on the principal and then added to it.The amount of money in an investment is modeled by the function A = 600(1.0317)'. The variable A represents the investment balance in dollars, and t the number of years since 2006. (A) In 2006, the balance was $ (D TIYou have been depositing money into an account yearly based on the following investment amounts, rates and times, what is the value of that investment account at the end of that period?
- The amount of money that you are willing to pay from the total price of the asset is called; O a. Total of monthly payment O b. Deferred payment O c. Down payment O d. Total of monthly payment plus down paymentTo calculate the effective rate of return on an investment, the total compound interest earned in 1 year is divided by the _____.REQUIRED Study the information given below and answer the following questions: 1. Calculate the Payback Period (expressed in years, months and days). 2. Calculate the Accounting Rate of Return on average investment (expressed to two decimal places). 3. Identify TWO (2) reasons why Umdloti Limited should not use the accounting rate of return to evaluate capital investments. 4. Calculate the Net Present Value. 5. Calculate the Internal Rate of Return (expressed to two decimal places) if the net cash flows are R320 000 per year for five years. Your answer must include two net present value calculations (using consecutive rates/percentages) and interpolation.
- Consider that you have $4,332,989 to invest across three assets using the price weighted methodology. Your analysis of these assets has provided the information in the two tables below. (Note: numbers in red are negative) Asset Price at beginning of the year (in $) Expected price at the end of the year (in $) Standard deviation (%) Correlation A B C A 1.00 0.84 0.78 c. In dollars and cents, what is the expected value of this portfolio after 12 months? d. What is the standard deviation of this portfolio, in percentage terms? A B 155.55 137.22 182.22 164.77 42.11 Required a. What is the expected compound annual growth rate of return for this portfolio, in percentage terms? b. What is the expected continuously compounded return on this portfolio in percentage terms? B 0.84 1.00 0.44 41.50 с 0.78 0.44 1.00 C 88.14 104.12 42.33The interest of a compound interest investmeut or loan can be computed with the formula 1-A-P. The end amount of a compound interest investment or loan can be computed with the formula A- P(1. The total percentage rate oe total retum of a simple interest investment or loan can be computed with the fonmala Laterest 100 Principal Use these foemulas to evaluate the aonts indicated below Chloe investa 15, 000 at a compound iaterest ate of 8 compounded monthly for 5 yesrs Deteine the total amot she will receive fros her ivestment at e end of 5 years Chloe will eceive a total of S the enl of 5 years Pevin dllars Detarine the istanet she will reoeive fe le vestnt athe end of5 years Choe will receiveS at he ted of 5 y Pview dllan D l p ag e ba tla nle otahe ond of5 years Cloes eet wil o tal Satentltiveo be inal ame the cnd of S yourou are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment End of Year A B C 1 $ 2,000 $ 2,000 $ 6,000 2 3,000 2,000 6,000 3 4,000 2,000 (6,000) 4 (5,000) 2,000 (6,000) 5 5,000 6,000 16,000 a. What is the present value of investment A at an annual discount rate of 13 percent? b. What is the present value of investment B at an annual discount rate of 13 percent? c. What is the present value of investment C at an annual discount rate of 13 percent?
- . If the liabilities are $4,000,000 and the owners’ equity is $1,200,000, what are theassets worth?If the value of liabilities is 30000 OMR and Assets are 100000 OMR. Which of the following is the amount of Owner Capital? Select one: O a. 100000 OMR b. 90000 OMR c. 10000 OMR O d. 70000 OMRInsert the answer for each of the following: A. P=$4,500, r=.06, t=4 years. Interest ?__________________________. B. p= $ 3,200, r=.023, t= 3months. interest ? ________________________. C. p=$ 1,700, r=.055, t= 90 days. interest ? ____________________________. D. sales $ 3,790, returns $ 390, sales terms 2/10 n 30. discount ________________? and E. remittance ( paid) __________________________? ( assume paid in discount period)