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%?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% .Suppose that you plan to invest $1500 at the end of each of the next 9 years, and you want to have accumulated $19,500 at the end of this period, what rate of return would you need to achieve? 10% 9% 8% 11% 12%
- An investment of P100,000 is expected to yield a regular annual net income of P25000 for 10 years. Determine the benefit-cost ratio if money is worth 10% per annum.An investment of $70,000 yields a net annual income of $15,000 for 6 years. What is the internal rate of return (IRR) for this investment?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%)
