You are considering investing in a security that will pay you $2,000 in 30 years. a. If the appropriate discount rate is 11 percent, what is the present value of this investment? b. Assume these investments sell for $766 in return for which you receive $2,000 in 30 years. What is the rate of return investors earn on this investment if they buy it for $766?

You are considering investing in a security that will pay you ​$5,000 in 29 years. If the appropriate discount rate is 12 percent​, what is the present value of this​ investment? b.  Assume these investments sell for ​$2,423 in return for which you receive ​$5,000 in 29years. What is the rate of return investors earn on this investment if they buy it for ​$2,423​? If the appropriate discount rate is 12 percent, the present value of this investment is

You are considering investing in a security that will pay you 2,000 in 25 years. If the appropriate discount rate is 9 percent what is the present value of this investment? Assume these investments sell for $1,103 in return for which you receive $2,000 in 25 years. What is the rate of return investors earn on this investment if they buy it for 1, 103 ?

(Solving for i​) You are considering investing in a security that will pay you ​$5,000 in 31 years.  a. If the appropriate discount rate is 11 percent,​ what is the present value of this investment? ​(Round to the nearest​ cent.) b. Assume these investments sell for ​$1,680 in return for which you receive ​$5,000 in 31 years. What is the rate of return investors earn on this investment if they buy it for ​$1,680​?

USE EXCEL TO SOLVE THIS PROBLEM AND SHOW THE FORMULA! You are considering investing in a security that will pay you $1,000 in 30 years. a. If the appropriate discount rate is 10 percent, what is the present value of this investment? b. Assume these securities sell for $365, in return for which you receive $1,000 in 30 years. What is the rate of return investors earn on this security if they buy it for $365?

The amount of money originally put into an investment is known as the present value P of the investment. For example, if you buy a $50 U.S. Savings Bond that matures in 10 years, the present value of the investment is the amount of money you have to pay for the bond today. The value of the investment at some future time is known as the future value F. Thus, if you buy the savings bond mentioned above, its future value is $50.     If the investment pays an interest rate of r (as a decimal) compounded yearly, and if we know the future value F for t years in the future, then the present value P = P(F, r, t), the amount we have to pay today, can be calculated using the formula below. P = F ×  1 (1 + r)t   We measure F and P in dollars. The term  1/(1 + r)t  is known as the present value factor, or the discount rate, so the formula above can also be written as the following. P = F × discount rate (a) Explain what information the function P(F, r, t) gives you. The function…

A You are considering investing in a security that will pay you $1000 in 30 years. If the appropriate discount rate is 10%, what is the present value of this investment? Assume these investments sell for $365, in return for which you receive $1000 in 30 years, what is the rate of return investors earn on this investment if they buy it for $365? b What is the accumulated sum of each of the following streams of ordinary annuity payments? $35 per half-year for three and a half years at 14% p.a. compounded half- yearly. $25 a year for three years compounded annually at 2%. $500 a year for 10 years compounded annually at 5%

(Related to Checkpoint​ 5.6) ​ (Solving for i​) You are considering investing in a security that will pay you ​$1,000 in 25 years.   a.  If the appropriate discount rate is 11 percent​, what is the present value of this​ investment? b.  Assume these investments sell for ​$259 in return for which you receive ​$1,000 in 25 years. What is the rate of return investors earn on this investment if they buy it for ​$259​? a.  If the appropriate discount rate is 11 ​percent, the present value of this investment is ​$nothing. ​(Round to the nearest​ cent.)

​(Related to Checkpoint​ 5.6) ​ (Solving for i​) You are considering investing in a security that will pay you ​$1,000 in 27 years.   a.  If the appropriate discount rate is 12 percent​, what is the present value of this​ investment? b.  Assume these investments sell for ​$515 in return for which you receive ​$1,000 in 27 years. What is the rate of return investors earn on this investment if they buy it for ​$515​? a.  If the appropriate discount rate is 12 ​percent, the present value of this investment is ​$nothing. ​(Round to the nearest​ cent.)

(Related to Checkpoint 5.6) (Solving for ) You are considering investing in a security that will pay you $4,000 in 28 years a. If the appropriate discount rate is 12 percent, what is the present value of this investment? b. Assume these investments sell for $2,229 in return for which you receive $4,000 in 28 years. What is the rate of return investors earn on this investment if they buy it for $2,229?