Suppose you want to have $9,000 saved in 6 years. If you can earn 4.6% on your funds, how much would you have to invest today to reach your goal? $6,310 $ 6,456 $6,872 $ 6,853

Q: You receive £5,000 in three years' time and the cost of capital for the project is 7%. What is that…

A: Solution: Present value stands for the value calculated in today's terms.  The formula for present…

Q: An investor is told that the following cash flow profile has a present value of $11,500 assuming…

A: Present Value refers to the value of cash flows today which is to be received at some future time…

Q: Your current account balance is $16,500.  You invested $3,000 12 years ago.  What rate of return did…

A: Present value (PV) is the current value of a future payment or a stream of future payments,…

Q: In planning for your retirement, you expect to save $500 in year 1, $1500 in year 2, and amounts…

A: As you have asked multiple questions, we will solve the first question as per the policy presented…

Q: FUTURE VALUES Su Mei’s parents want to put enough money aside for her education by the time she goes…

A: Future values refer to those values that are calculated by using the present cash flows. An investor…

Q: You want to start a business that you believe can produce cash flows of $5,600, $48,200, and…

A: Present Value is the current price of future value which will be received in near future at some…

Q: You want to have $3.15 million when you retire in 35 years. You feel that you can save $775 per…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: If you insulate your office for $13,000, you will save $1,300 a year in heating expenses. These…

A: NPV is also known as Net present value. It is a capital budgeting technique which helps in decision…

Q: What is the most you should pay to receive the following cash flows if your required rate of return…

A:

Q: If you invest $14,500 today at 9.25% how much will you have 12 years from now? Multiple Choice…

A: The FV of an investment refers to the total worth of the cash flows of the investment at a…

Q: You have been investing $350 a month for the last 8 years. Today, your investment account is worth…

A: Compound = monthly = 12 Payment = pmt = $350 Time = nper = 8 * 12 = 96 Future value = fv = $43,262…

Q: How much money do I need today to invest at 9% to have enough money to buy a house with cash worth…

A: Time value of money concept says that a dollar amount invested today will have more value in future…

Q: You want to fund an endowment that will spit off $500,000 next year, and want that to grow at 2% a…

A: Cash Flow = cf = $500,000Growth Rate = g = 2%Rate of Return = r = 7%

Q: A person wants to have $3,000 available to spend for an overseas trip four years from now. If such…

A: Time value of money concept is one of the useful concept used in finance. It says that a dollar…

Q: You are offered ​$100,000 today or ​$300,000 in 13 years. Assuming that you can earn 11 percent on…

A: The PV of an investment refers to the combined value of the cash flows of the investment based on…

Q: You are offered ​$80,000 today or ​$400,000 in 10 years. Assuming that you can earn 16 percent on…

A: The PV of an investment refers to the combined worth of the cash flows of the investment assuming…

Q: much simple in yeer does a $10,000 investment earn at 5.6 over

A: The interest on investment is income on the investment.

Q: 9) If you have $1,000 today and want to invest it at 7% per year, how much will you have after 12…

A: The objective of this question is to calculate the future value of an investment given the present…

Q: You put $1000 in an investment that earns 5% per year. How much will you have in 20 years? $2653.30…

A:

Q: Suppose you earned a $445,000 bonus this year and invested it at 8.25% per year. How much could you…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: You deposit $2500 each year into an investment account that earns 8.5% interest for 20 years. Find…

A: Given Amount of deposit $2500. rate 8.5% for 20 years.

Q: Suppose you earned a $295,000 bonus this year and invested it at 8.25% per year. How much could you…

A: Given  ,           P=?           Pv=295000 Bonus invested           i=intt rate=8.25 % or…

Q: I wish to have $2,000,000 when I retire in 30 years time. What is the monthly contribution I need to…

A: By rearranging the FV of ordinary annuity formula, we can determine the monthly payment. The formula…

Q: Today, you decide to invest $7,000 for 29 years. If you can earn 9.05 percent for the first 19 years…

A: Here, Invetsment Amount $ 7,000.00Time Period of Invetsment29Interest Rate for first 19…

Q: You would like to take a trip in 10 years that is expected to cost $55,000 at that time. If you can…

A: Present value of future amount is computed byfollowing formula-PV =  A ÷ ( 1+r)nWhere,PV = Present…

Q: What rate of return would you need if you wanted to accumulate $1,000,000 in 25 years and invest…

A: Rate of return: It implies to the rate that is often expected or charged by the investor from the…

Q: Suppose you found an investment that earns 6.0% each year. Suppose you want to withdraw 24,000…

A: Given information: Investment earns 6% Future value is $24,000 Number of years is 4

Q: How much money do you have to invest in order to accumulate a total of $4761 in 327 days if you are…

A: Invested amount refers to the present value of an investment made today as the money present today…

Q: You invest $50,000 for three years that will earn 3.6 percent compounded continuously. What will be…

A: Given Information: Amount invested=$50,000 Interest Rate=3.6% compounded continuously Time(in…

Q: You have $12044 to invest and want to save up $26452.  You hope to earn a return of 9.5%.  How long…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: Problem 10. A local businessman has set up a school fund that will last forever that can earn 3.1%…

A:

Q: 1.In order to create an endowment, which pays $100,000 per year, forever, starting three years from…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: You want to be able to set up a scholraship fund that will last forever and  you feel that you can…

A: First we need to calculate effective annual rate by using this equation Effective annual rate…

Q: You have invested $2,500 in an asset that will yield 8% each year for the next 5 years. How much…

A: Money get back after n years = Investment * [ 1 + Yield rate ]n

Q: we have $1,000 and we are offered to put it in investments that will double this money in 8 years,…

A: Future Value is the value of current investments at a certain future date at the assumed interest…

Q: If you invested $2500 in an account 12 years ago, and it's worth $4,285 now, what rate of return did…

A: Information Provided: Present value = $2500 Future value = $4285 Term = 12 years

Q: How much money do you need to invest at( 23)/(4)% in order to have $12,000 after 7 years?

A: The present value of the amount that is required by an individual to invest for a fixed number of…

Q: You want to establish an Endowment to provide scholarships for MU, Business students. You want to…

A: We need to calculate value of endowment by using this formula Amount need to invest =Payment for…

Q: Consider making an investment of $10,000 each year. If the first $10,000 investment is made at the…

A: Future value refers to an amount of a current asset at some future date effected by interest rates,…

Q: You are considering an investment that will pay you $5,000 per month for 10 years. You want to earn…

A: Present value (PV) is the current value of a future payment or a stream of future payments,…

Q: You want to have $10,500 saved 8 years from now. How much less can you deposit today to reach this…

A: A = whereA = Amount to be deposited todayFV = future valuer = interest raten = time period

Q: 5. If you have an initial investment of $5,500 that you would like to grow to $12,000 over the next…

A: Investment refers to the allocation of the money in order to earn benefit over the money…