Show graphically how $1,000 invested today will grow over the next 50 years if you earn 8% simple, or compounding, rate per annum on the investment.
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- How much must be invested now to receive $50,000 for 8 years if the first $50,000 is received in one year and the rate is 10%?Suppose you save $2,800 ayear for 43 years into an investment account that earns 8.5% return, how much will you have at the end of the periods? Formula? Excel Function?What is the present value of your-end-of-year investment of $1000 per year, with the first cash flow received four years from today and the last one 10 years from today? Use a discount rate of 18% .
- If you want to save $50,000 in 8 years, you will earn 6.5% on your investment. a. How much will your payments be annually? b. Identify N, PV, FV, PMT, and I/R, and the formula used to calculate the payment.If $25,000 is invested at 10% per year compounded monthly, in approximately how many years will the investment double? (Show your work with both the formula and financial calculator and compare the results. Are they equal?)Suppose you invest $385 at the end of each of the next eight years. (a) If your opportunity cost rate is 7 % compounded annually, how much will your investment be worth after the last $385 payment is made? (b) What will be the ending amount if the payments are made at the beginning of each year?
- An investment opportunity requires a payment of $620 for 12 years, starting a year from today. If required rate of return is 6.00 percent, what is the value of the investment to you today?Suppose you make a one-time $ 8,000 investment into an account that yields a 12% annual return. If you keep the account for 10 years, what should be the account balance? Round your answer to 2 decimal placesWhat is the value of today of an investment that will pay $100 per year for 5 years. Assume first payment is made 1 year from today and the interest rate is 7%?
- At the end of each year for the next 18 years you will receive cash flow of $3700 the initial investment is $25,200 today what rate of return are you expecting from this investment?suppose that $5000 is invested each quarter, for the next 20 years. what is the future worth if the investment earns an annual rate of 9% compounded quarterly?If you pay $500 for an investment that returns $600 in 1 year, whatis your annual rate of return? (20%)
