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A service oil firm want to develop their financial balance to be within more economic benefits, so what is the balance required in an account at the end of 10 years if 2,500 millions of IQD is deposited today and the account earn 4% interest, compounded annually, quarterly?
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- A business is planning to purchase a piece of equipment that will produce a continuous stream of income for 8 years with rate of flow f(t) = 9,000. If the continuous income stream earns 6.65%, compounded continuously, what single deposit into an account earning the same interest rate wi produce the same future value as the continuous income stream? (This deposit is called the present value of the continuous income stream.) What is the future value of the investment? $ (Round to the nearest dollar as needed.) What is the present value of the investment? (Round to the nearest dollar as needed.)Suppose you have an account that will grow to $381,000.00 in 15 years. It grows at 3% annual interest, compounded monthly, under the current investment strategy. The owner of the account, however, wants it to have $505,000.00 after 15 years. How much additional monthly contribution should they make to meet their goal?Example 1. Your company wants to have GHS 135,000 four years from now to buy a new machine. As the financial manager of the company, you've just deposited GHS 45,000 today into a new bank account for saving towards the new machine. What equal amount must the company deposit each year in order to achieve it target if the GHS 45,000 deposited today and the annual deposits can earn an interest of 12% per year?
- at is the external rate of return for the investment project? Should the new computer system be recommended for purchase? 2. You borrow $280,000 at 4.00% per year and will pay off the loan in equal payments starting one year after the loan is made over a period of ten years. What are the annual end-of-year payments? Determine the amount of interest and principal that are paid each year. What is the total interest paid for the loan? 3. A distillation column is designed purchased and installed for a aoat of $a sill:How do I work this problem in excel? What will $82,000 grow to be in 11 years if it is invested today at 8% and the interest rate is compounded monthly?You 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 started an investment account 10 years ago with $2100, and it now has grown to $8900. a. What annual rate of return have you earned (you have made no additional contributions to the account)? b. If the investment account earns 11% per year from now on, what will the account's value be ten years from now? a. The annual rate of return is%. (Round to two decimal places.) View an example Get more help - Clear allYou wish to have an investment that will bring about $20 000 infive years, and the rate of return is 8% per annum. Required:a. In term of time value of money, what is the amount of $20,000 represent?b. How much do you need to invest now if the rate is compounded annually(to the nearest dollar)?c. If you have $20,000 now and put the sum into a bank account that pays5% per year. How much will you have in 6 years if the rate is compounded semiannually, quarterly, monthly and daily (to the nearest dollar)?Suppose an income stream will produce income at a rate of 4000 + 1000t dollars per year for 5 years, and is invested into an account that earns interest at an annual rate of 6% compounded continuously. (a) How much total income does the income stream produce? (b) How much money will be in the account after 5 years? (c) What is the present value of the income stream?
- A company is considering an investment expected to yield $70,000 after six years. If this company demands an 8% return, how much is it willing to pay for this investment today?1. What is the future value of an initial $1000 after 5 years if it is invested in an account paying 5% annual interest? 2. What is the present value of $1000 to be received in 4 years if the appropriate interest rate is 5%? 3. We sometimes need to find out how long it will take a sum of money (or anything else) to grow to some specified amount. For example, if a company's sales for 2020 is $1000 and expected to grow at a rate of 10% per year, how long will it take sales to double?What is the future value of a constant income stream of $20,000 per year in 6 years from now given a continuous interest rate of 3.5% per annum? Give your answer to the nearest dollar and show working. уears