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Suppose that you invest $3,000 in stock. Five
years later, your investment yields $8,568. What is
the rate of
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- What is the process of Calculating the Return on Invested Capitalfor Mixed Investments?John plans to invest an equal amount of $2.000 in equity fund every year-end beginning with this year. The expected annual rate of return is 15%. She plans to invest for 20 years. The expected annual rate of return is 15%. She plans to invest in 20 years. How much could she expect to have at the end of 20 years?Suppose that 50,000 dollars from a retirement account is invested in a large cap stock fund. After 35 years, the value is 189,953.5. How long will it take for the investment to reach 250,000 dollars? round to the nearest tenth of a year.
- A man invests his savings in two accounts, one paying 6 percent and the other paying 10 percent simple interest per year. He puts twice as much in the lower-yielding account because it is less risky. His annual interest is 6534 dollars. How much did he invest at each rate? Your answer is total in the account paying 6 percent interest is total in the account paying 10 percent interest isWhat is the definition of internal rate of return (IRR)? If you expect the annual interest rates are much different in the next 10 years, would the IRR be the ideal measure? Why or why not?How long does it take for your money to double if you can earn 7% on your investment? Triple? Quadruple?
- Suppose you want to realize a future value of $150,000 in 30 years on an investment you make. The average annual rate of return is 8.75%. What will be the present value of your investment?DRAW THE CASH FLOW DIAGRAM Ashley purchased a common stock worth $5,000 every year (starting in year 1) for a period of 10 years. At the end of the 10th year, she sold all her stocks to a buyer for $80,000. Find the rate of return received on the investment.You are thinking of investing $3600 this year. You have received advice from family members. • Aunt Anne recommends investing in the stock market with a 9.45% average rate of return. • Uncle Rick recommends investing in a 5.60% certificate of deposit (CD). • Grandpa recommends investing in a 0.53% savings account. How much money will you have at the end of 10 years if you pick Aunt Anne's advice? money after 10 years: S How much money will you have at the end of 20 years if you pick Uncle Rick's advice? money after 20 years: $ How much money will you have at the end of 40 years if you pick Grandpa's advice? money after 40 years: $
- Q2: If the present value of my investment $7000 and the rate of interest 5% what will the value be in 8 years? 1-How much would you have at the end of 8 years using simple interest? 2- How much would you have using compound interest? 3- Compare the results and analyze your answer.Give typing answer with explanation and conclusion Gustav Co. is planning to issue new 30-year bonds. The current plan is to make the bonds non-callable, but this may be changed. If the bonds are made callable after 5 years at a 5% call premium, how would this affect their required rate of return? Question 6 options: There is no reason to expect a change in the required rate of return. The required rate of return would increase because the bond would then be?Suppose Kay inherits $250,000, which she invests today at a rate of return of 9 percent compounded annually. Who much will Kay's investment be worth in 25 years?