
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:What would you pay for an investment that pays you $5000000 after fifty years? Assume that the relevant interest rate
for this type of investment is 8%.
$496900
$1576200
$539650
$157600
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- • Investment A costs $10000 today and pays back $11500 two years from now. Investment B costs $8000 today and pays back $ 4500 each year for two years. If an interest rate of 5% is used. Which alternative is betterarrow_forwardcurrent valuearrow_forwardPLS ANSWER THIS QUESTION ASAP WILL RATE YOU!arrow_forward
- Assume you invest $15,000 today. How much will you have in six years at an interest rate of 9%? Future Value of $1: 8% 123456 1.080 1.166 1.260 1.360 1.469 1.587 OA. $23.805 OB. $25,155 OC. $26.580 OD. $23,085 9% 1.090 1.188 1.295 1.412 1.539 1.677 10% 1.100 1.210 1.331 1.464 1.611 1.772 MAKED ہےarrow_forwardHow much money should you invest at an interest rate of 6% compounded monthly, to have P400,000 in 5 years?arrow_forwardWhat is the present value (PV) of $40, 000 received ten years from now; assuming the interest rate is 5% per yeal? A. $20,873 B. $42,974 C. S24, 557 D. $26,000arrow_forward
- What is the present value (PV) of $40, 000 received ten years from now; assuming the interest rate is 5% per yeal? A. $20,873 B. $42,974 C. S24, 557 D. $26,000arrow_forwardg What is the future value of an ordinary annuity of S10 compounded at 10 percent? What would be the future value if it were an an- nuity due? h. You have just borrowed $100,000, and you agree to pay it back over the next 25 years in 25 equal end-of-year payments plus 10 percent compound interest on the unpaid balance. What will be the size of these payments? LWhat is the present value of a $1,000 perpetuity discounted back to the present at 8 percent? 000 per year for 7 yearsarrow_forwardHow much would you be willing to pay today for an investment that will pay you $2,500,000 in 30 years, assuming your discount rate is 14.25%.arrow_forward
- Calculate the compounding factor you would use to find the future value of an amount of money you will receive 20 years in the future, assuming a 6% interest rate. Question 14 options: 3.207 3.042 2.498 2.662arrow_forwardQUESTION 5 What is the present value of an annuity (to nearest dollar) that will give you 25 payments of $1,000 and the first payment is in one year from today? Assume an interest rate of 10 percent. O 9169 O 8981 O 8421 O 9077 O 8514arrow_forward
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