the first question is using rule 72: If the value of land in an area is increasing 6% a year, how long will it take for property values to double?my other question is computing time value of money using time values of money table: The future value of $450 six years from now at 7%.I do not understand how to figure these out with the tables or how to start solving them.

Q: You have an investment account that started with $3,000 10 years ago and which now has grown to…

A: To maintain and increase the buying power of the money invested, an investment's rate of return…

Q: You receive a phone proposal to invest in a new business. The caller informs you that it will take a…

A: Present value of the investment is the cashflows discounted at given discount rates.

Q: You buy a house that costs $10,000. Its annual maintenance cost = $100/year. After 5 years, you can…

A: Given: Initial cost = $10,000 Maintenance cost = $100 Years = 5 Year 5 sale value = $20,000

Q: 10) What is the value of an asset that pays a cash flow of $500 for the next 6 years (at the end of…

A: The Value of an asset is calculated as the discounted value of future expected cash flows, by use of…

Q: Case study a. Let's say your friend offer simple investment. You are planning to buy an asset for RM…

A: Rate of return is the amount of profit earned on the investment and this is the percenatge of the…

Q: The dollar value v (t) of a certain car model that is t years old is given by the following…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: 4. A manufacturer of flashlights wants to have $750,000 available 8 years from now so that a new…

A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…

Q: You are thinking of building a new machine that will save you $ 4,000 in the first year. The machine…

A: First-year savings  = $4,000Decline rate = 3%Interest rate = 7%

Q: The following questions are on the concepts and takeaways learned in the modules on the Time Value…

A: a)Based on the given information, it is most likely that Larry had his interest compounded more…

Q: Suppose you bought a condo for $100,000 financing it with a $20,000 down payment of your own funds…

A: Return on asset (ROA) is the ratio to calculate the efficiency and profitability which a firm will…

Q: The answer to my last two questions regarding how much money should be invested to accumulate $14000…

A: Let’s assume that the interest on such payment will be 3%

Q: If a piece o property is expected to give benefits to ts owner of $8100 each year for a very long…

A: The present value of perpetuity would give the good estimate of property value given the interest…

Q: Specifically, calculate the present value of future rents. Use a discount rate of 5%. 1. A parcel of…

A: The question is based on the concept of present value calculation of perpetual cash flow with…

Q: You estimate that you can save $8,800 by selling your home yourself rather than using a real estate…

A: The question gives the following information:

Q: Use the present value and future value formulas to solve the following problems. Confirm your…

A: Please refer to the image below

Q: Use the formula for simple interest, I = Prt, to find the indicated quantity. Assume a 360 day year.…

A: Simple interest is the interest which is calculated annually and no compounding factor is included.

Q: 8. Suppose you invest $3 in a special account that doubles your money every year. a. Find a function…

A: t = no.of years f(t) = money at time t  At t =0, f(t) =3 = 3*20      t =1, f(t) = 2*3 = 3*21     t…

Q: 2

A: The objective of this question is to calculate the present value of a series of future cash…

Q: You are thinking of building a new machine that will save you $5,000 in the first year. The machine…

A: To calculate the present value we will use the below formula   Present value = P/(r+d) Where P -…

Q: Suppose you invest $130 a month for 4 years into an account earning 6% compounded monthly. After 4…

A: TVM concepts (time value of money) will be used and applied here.   Money invested today grows in…

Q: Consider an asset that costs $120 today You are going to hold it for 1 year and then sell it Suppose…

A: The expected average return rate can be found by multiplying the probabilities and returns with each…

Q: If an investor invests her money in a project with a 10% annual return. What is her nominal rate  of…

A: The effective interest rate (EIR), effective annual interest rate (AER), or simply effective rate is…

Q: What is the present value of the following? Use Appendix B as an approximate answer, but calculate…

A: Future Value = fv = $8100Time = nper = 14 yearsInterest rate = rate = 7%

Q: Using the image attached to answer the following questions. 4) Suppose you invest $14,500 some…

A: Time, the value of money refers to a concept used for evaluating the current value of an asset that…

Q: years? Use the solver. Clearly write the form

A: Mortgage loans are necessary for buying home because these are long term loans paid by equal monthly…

Q: Question#10: A person invested JD 50,000, after 4 years he invested an additional JD10,000, after…

A: given , pv = 50,000 pv4= 10,000 r=10% fv = 200,000

Q: ind the future value of the following annuities.

A: Future Value of Ordinary Annuity: It refers to the future value of annuity payments made at the end…

Q: Your friend in mechanical engineering has invented a money machine. The main drawback of the machine…

A: NPV= Annual Cash inflow / Interest rate - Cash outflowIf NPV of project is positive, Project must be…

Q: What is the excel function and formula for this question?   Off-The-Books Investment Firm, LLC, has…

A: The return which is determined in terms of percentage which is expected to be earned on investment…

Q: You invest $ 500 today and receive $ 750 at the end of 5 years. a. DETERMINE the internal rate of…

A: IRR refers to that rate of return at which NPV is zero. At this rate the Present value of all cash…

Q: you found 20 thousand dollars two years from today. Of course you'll invest it right away! Maybe…

A: The FV of a payment is the value of the payment at maturity assuming that it grows at a fixed rate.…

Q: You can buy property today for $2.0 million and sell it in 4 years for $3.0 million. (You earn no…

A: The value that is determined after compounding the present value over interest rates are known as…

Q: You have an opportunity to invest in a FinTech start up. You will have to make two annual payments -…

A: Expected annual return or IRR indicates the anticipated compound annual rate of return earned on an…

Q: Find the present worth sum of money that would be equivalent to the future amounts of $5000 in year…

A: a) Inflation Adjusted Rate = Real Rate + Inflation Rate Inflation Adjusted Rate = 10%+5% Inflation…

Q: Assume that at the beginning of the year, you purchase an investment for $2,500 that pays $67 annual…

A: Purchase price of the investment = $2,500Investment value at the end = $2,350Annual income received…

Q: James heard about a good investment opportunity from his financial advisor, Bob. The interest rate…

A: Let PV = Amount to be deposited FV = Future value r = 12% per month n = Number of months

Q: For TVM calculator:  Write each known variable’s value as it appears in the calculator and use a…

A: Given information: Interest rate : 1.75% Future value : $21,000 Time period : 10 years Compounding…

Q: .If we want to turn $500 into $1000 over a period of 3 years, at what interest rate would we have to…

A: FV = 1000 PV = -500 N = 3 PMT = 0 use rate function in Excel

Q: Your financial advisor/cousin has told you about an investment that will ABSOLUTELY go up in value…

A: Answer = 16.99

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.