Salvatore has the opportunity to invest in a scheme which will pay $5,000 at the end of each of the next 5 years. He must invest $10,000 at the start of the first year and an additional $10,000 at the end of the first year. What is the present value of this investment if the interest rate is 3​%?   A. −$5,907.57   B. −$3,189.80   C. $5,907.57   D. $3,189.80

8) Faisal has $12,000 in his savings account and can save an additional $3600 per year. If interest rates are 12%, how long will it take his savings to grow to $47,000? A) 4.3 years B) 6.3 years C) 5.3 years D) 7.3 years

6. An investor is considering an investment that will pay $2,150 at the end of each year for the next 10 years. He expects to earn an annual return of 18 percent on his investment. How much should he pay today for the investment? How much should he pay if the investment returns are paid at the beginning of each year?

How much final amount would Abraham receive if he invests P100, 000 for 1 year and 3 months at 11% simple interest?

1. Ali will perform the pilgrimage in 10 years. Estimated ONH for the next 10 years is IDR 50,000,000. If the interest rate is 12%/year. Define: a. How many installments of Hajj must Ali pay annually? b. If Ali wants to pay cash now how much will he have to pay?

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Your grandfather would like to share some of his fortune with you. He offers to give you money under one of the following scenarios (you get to choose): 1. $8,750 a year at the end of each of the next seven years 2. $50,050 (lump sum) now 3. $98,650 (lump sum) seven years from now Calculate the present value of each scenario using a 6% interest rate. Which scenario yields the highest present value? Would your preference change if you used a 12% interest rate? (Click the icon to view the present value (Click the icon to view the present value annuity factor table.) factor table.) (Click the icon to view the future value annuity factor table.) factor table.) (Glick the icon to view the future value Using a 6% interest rate, calculate the present values for each scenario. (Round the amounts to the nearest dollar.) Present value of Scenario 1

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Suppose an investor, Erik, is offered the investment opportunities described in the table below. Each investment costs $1,000 today and provides a payoff, also described below, one year from now. Option Payoff One Year from Now 1 100% chance of receiving $1,100 2 50% chance of receiving $1,000; 50% chance of receiving $1,200 3 50% chance of receiving $200; 50% chance of receiving $2,000   If Erik is risk averse, which investment will he prefer? The investor will choose option 1.   The investor will choose option 2.   The investor will choose option 3.   The investor will be indifferent toward these options.     Which kind of stock is most affected by changes in risk aversion? High-beta stocks   Low-beta stocks   All stocks are affected the same, regardless of beta.   Medium-beta stocks

What effective interest rate will Frankie have to earn if his investments of $2,000 at the end of every three months for 20 years are to have a maturity value in 20 years of $1,000,000?