What will be the value of your saving in 4 years with an interest rate of 10% if you invest $120 today, $220 in two years and withdraw $60 in year 4? elect one: a.$441.88 b.$259.08 c.$381.89 d.$541.02

What would you prefer to receive if the interest rate is 20%? OA. $64 one year from now B. $95 four years from now OC. $84 three years from now O D. $73 two years from now.

Question 5

Problem 1: You can choose between two different investments: (A) an annuity that pays $10,000 each year for the next 6 years; (B) a perpetuity that pays $10,000 forever, starting 11 years from now. 1. Which investment do you choose, A or B, if the interest rate is 5%? What if it is 10%? Explain in words the reason behind your choices.

5. Present value To find the present value of a cash flow expected to be paid or received in the future, you will the future value cash flow by (1+1)N What is the value today of a $42, 000 cash flow expected to be received 17 years from now based on an annual interest rate of 7% ? $13,296 $10,637 $132, 670 $20, 609 Your broker called carfier today and offered you the opportunity to invest in a security. As a friend, he suggested that you compare the current, or present value, cost of the security and the discounted value of its expected future cash flows before deciding whether or not to invest. The decision rule that should be used to decide whether or not to invest should be. Everything else being equal, you should invest if the discounted value of the security's expected future cash flows is greater than or equal to the current cost of the security. Everything else being equal, you should invest if the current cost of the security is greater than the present value of the security's…

You are opening an investment account that will earn 11.5% compounded annually.  You will invest $1,000 today, $5,000 one year from today, $18000 two years from today, $8,000 three years from today, and $12,000 four years from today.  What will the value of your account be 4 years from today?   Question 2 options:   53,225   59,065   51,775   54,635   58,705

Suppose you wish to have $17,250 in 5 years. Use the present value formula to find how much you should invest now at 5% interest, compounded semiannually in order to have $17,250, 5 years from now. Then calculate the amount of interest. O $3,774.33 $4,312.50 $12,937.50 $13,475.67

2. Assume that you can invest to earn a stated annual rate of return of 12 percent, but where interest is compounded semiannually. If you make 20 consecutive semiannual deposits of $500 each, with the first deposit being made today, what will your balance be at the end of Year 20? $57,900.83 $58,988.19 O $52,821.19 O $64,131.50 O $62,527.47

If $10,000 is invested in a certain business at the start of the​ year, the investor will receive $3,000 at the end of each of the next four years. What is the present value of this business opportunity if the interest rate is 4​% per​ year?   A. $1,068   B. $890   C. $445   D. $1424

Q34