Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Related questions
Question
Transcribed Image Text:Rate of return-Annuity What is the rate of return on an investment of $11,733 if the investor will receive $2,300 each year for
the next 14 years?
The rate of return on the investment, r, is %. (Round to two decimal places.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by stepSolved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- K An annuity with a cash value of $11,300 pays $950 at the beginning of every three months. The investment earns 11% compounded quarterly. ▲ (a) How many payments will be paid? (b) What is the size of the final annuity payment? (a) The number of payments is (Round up to the nearest whole number.) (b) The size of the final payment is $ (Round to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)arrow_forwardAn annuity is set up that will pay $1,700 per year for ten years. What is the present value (PV) of this annuity given that the discount rate is 6%? OA. $12,512 OB. $7,507 OC. $17,517 OD. $15,014arrow_forwardPresent Value of Annuity. You are entering into a contract that will provide you with an income of $160,000 each year for the next 45 years. If the annual interest rate is 7 percent, what is the present value of that stream of payments?arrow_forward
- Suppose the interest rate is 7.1% APR with monthly compounding. What is the present value of an annuity that pays $104 every 6 months for 7 years? The 6-month effective interest rate is%. (Round to three decimal places.) The present value is $ (Round to the nearest cent.) ...arrow_forwardIf the current rate of interest is 5%, then the future value (FV) of an investment that pays $1,000 per year and lasts 15 years is closest to: A. $12,947 B. $25,895 C. $21,579 D. $30,211arrow_forwardWhat is the present value of an investment that promises to pay you $ 1, 000 in five years if you can earn 6 percent interest compounded annually ? PV - Lump Sumarrow_forward
- An investment pays simple interest and doubles in 11 years. What is the interest rate?Answer = percent.arrow_forward4. a.) What is the future value of an annuity due with an annual payment of $1,500 for four years at 3% annual interest? b.) Find the total investment and c.) the total interest earned.arrow_forwardCalculate the future value in five years of $5,000 received today if your investments pay. 6 percent compounded annually 8 percent compounded annually 10 percent compounded annually 10 percent compounded semiannually 10 percent compounded quarterly What do your answers to these questions tell you about the relation between future values and interest rates and between future values and the number of compounding periods per year?arrow_forward
- Find the amount accumulated FV in the given annuity account. HINT [See Quick Example 1 and Example 1.] (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $2,300 is deposited quarterly for 10 years at 7% per year FV = $arrow_forward1. Solve for the present value of annuity due for an investor to receive P12,000.00 semi-annually for 6 years if it will be compounded at 8% semi- annually?arrow_forwardWhat is the present value of an ordinary annuity of P47,000 each year for eight years assuming a rate of return of 11%? (rounded) P241,860 P376,000 P557,380 P120,930arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Essentials Of InvestmentsFinanceISBN:9781260013924Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.Publisher:Mcgraw-hill Education,
Foundations Of FinanceFinanceISBN:9780134897264Author:KEOWN, Arthur J., Martin, John D., PETTY, J. WilliamPublisher:Pearson,
Fundamentals of Financial Management (MindTap Cou...FinanceISBN:9781337395250Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i...FinanceISBN:9780077861759Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan ProfessorPublisher:McGraw-Hill Education
Essentials Of Investments
Finance
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:9780134897264
Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:Pearson,
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i...
Finance
ISBN:9780077861759
Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:McGraw-Hill Education