Required informationAn investment broker that Ava trusts recommended that she purchase a $50,000, 15-year municipal bond that generatesa dividend of 4.5% per year payable quarterly. She will pay a discounted amount of $45,000 now for the bond. In general,Ava hopes to make 6.5% per year compounded quarterly on her investments.Using the PW value, determine if this is a financially advantageous investment for her. Solve with factors.The present worth is $This (Click to select) a financially sound investment.

A bond is a legal document that the business must repay the investor for the loan it received from…

Answered: Required information. An investment…

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter16: Real Estate And High-risk Investments

Section: Chapter Questions

Problem 2DTM

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Required information An investment broker that Ava trusts recommended that she purchase a $50,000, 15-year municipal bond that generates a dividend of 4.5% per year payable quarterly. She will pay a discounted amount of $45,000 now for the bond. In general, Ava hopes to make 6.5% per year compounded quarterly on her investments. Using the PW value, determine if this is a financially advantageous investment for her. Solve with factors. The present worth is $ This is not a financially sound investment.
Required information An investment broker that Ava trusts recommended that she purchase a $50,000, 15-year municipal bond that generates a dividend of 5.5% per year payable quarterly. She will pay a discounted amount of $45,000 now for the bond. In general, Ava hopes to make 7.5% per year compounded quarterly on her investments. Using the PW value, determine if this is a financially advantageous investment for her. Solve with factors. The present worth is $ This is not a financially sound investment. Check
What is the investment objective for a client who is 57 years old and planning to retire in 5 years? Select one: O a Preservation of capital and income. b. Growth. O c Developing a savings plan. Od. Preservation of capital. A PPN is issued with a NAV of $22.00, and is redeemed at $28 a month before maturity. Calculate the amount of tax per unit tha an investor in a 30% marginal tax bracket will owe at redemption. Select one: O a $0.90 Ob. $1.20 Oe $1.80 Od. $0.60 Which of the following institutions are not buy-side institutions? Select one: O a Trusts O b. Endowments Oc. Pension funds Od. Full-service dealers
Consider that Adjovi Hevi placed GHS 12,525 in Mutual Fund for the next 15 years. She is to earn a quarterly interest rate of 11.25% per year. a. Compute her Future value using i. Simple interest rate ii. Compound interest rate iii. Explain the difference in your results
Determining the right amount of short-term, liquid investments. Ella and Aaron Martin together earn approximately 92,000 a year after taxes. Through an inheritance and some wise investing, they also have an investment portfolio with a value of almost 200,000. a. How much of their annual income do you recommend the Martins hold in some form of liquid savings as reserves? Explain. b. How much of their investment portfolio do you recommend they hold in savings and other short-term investment vehicles? Explain. c. How much, in total, should they hold in short-term liquid assets?
DETERMINING THE RIGHT AM OUNT OF SHORT-TERM, LIQUID INVESTM ENTS. Leo and Ava Bryant together earn approximately 92,000 a year after taxes. Through an inheritance and some wise investing, they also have an investment portfolio with a value of almost 200,000. a. How much of their annual income do you recommend the Bryants hold in some form of liquid savings as reserves? Explain. b. How much of their investment portfolio do you recommend they hold in savings and other short-term investment vehicles? Explain. c. How much, in total, should they hold in short-term liquid assets?
The four people below have the following investments. Invested Amount Interest Rate Compounding Jerry Elaine $12,300 12% Quarterly 15,300 8 Semiannually George 22,300 7 Annually Kramer 18,300 9 Annually Required: 1-a. Calculate the future value at the end of five years. (EV of $1, PV of $1, FVA of $1, and PVA of $1) 1-b. Who has the greatest investment accumulation? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Calculate the future value at the end of five years. (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) Jerry Elaine George Kramer Future Value
Your financial advisor from Bluerock recommends you to invest in one of the plan. You want to compare and verify which of the following is the best investment option. Investment Plan A: Deposit $125,000 at the beginning and obtain $175,318.97 after 5 years.Investment Plan B: Deposit $243,000 at the beginning and obtain $319,771.42 after 7 years.Investment Plan C: Deposit $314,000 at the beginning and obtain $530,496.39 after 9 years. 1. Compute interest rate for all 3 plans. Which investment plan provides you the highest rate? 2. Your advisor updated the investment plan information yesterday. While the interest rate did not change for all 3 plans, future values of each investment are 210382.76, 415702.85, 742694.95, respectively. What would be the investment period for each plan? 3. Your advisor thinks it would be a good investment if you make an investment portfolio using all 3 investment plans suggested. He recommends investing in all 3 plans at year 0 and reinvest the money to…
The four people below have the following investments. Invested Amount Interest Rate Compounding Jerry $ 11,500 12% Quarterly Elaine 14,500 8 Semiannually George 21,500 7 Annually Kramer 17,500 9 Annually Required: 1-a. Calculate the future value at the end of three years. (FV of $1, PV of $1, FVA of $1, and PVA of $1) 1-b. Who has the greatest investment accumulation? ________________________________________________________ I don't understand how to convert the years to months or time periods to be able to work this problem
QUESTION: Sandra has at most $200,000 to invest in stocks, bonds, and money market funds. She expects annual yields of 15%, 10%, and 8%, respectively, on these investments. If Sandra wants at least $50,000 to be invested in money market funds and requires that the amount invested in bonds be greater than or equal to the sum of her investments in stocks and money market funds, determine how much she should invest in each vehicle to maximize the return on her investments. Stocks=?__________ Bonds=?_________ Money Market Funds=?________ What is the Maximum Return?_________ PLEASE MAKE SURE, I ONLY HAVE 1 CHANCE!
Assume Sheryl Jenkins wants to accumulate $ 12,485.35 in two years. She currently has $ 10,809.59 to invest. What interest rate must she earn on her investment (that is, if she deposits $ 10,809.59 today) to have $ 12,485.35 exactly two years from today?
The four people below have the following investments. Invested Amount $ 11, 200 14, 200 21, 200 17,200 Jerry Elaine George Kramer Reg 1A Required: 1-a. Calculate the future value at the end of three years. (FV of $1, PV of $1, FVA of $1, and PVA of $1) 1-b. Who has the greatest investment accumulation? Jerry Elaine Interest Rate Complete this question by entering your answers in the tabs below. Req 1B George Kramer 12% 8 7 9 Compounding Quarterly Semiannually Future Value Annually Annually Calculate the future value at the end of three years. Note: Use Excel or a financial calculator Round your answers to 2 decimal places.

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