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​?

Q: You have the opportunity to buy a perpetuity that pays $296,498 annually. Your required rate of…

A: The price of the perpetuity at which one should be indifferent between buying or not buying the…

Q: i need your solution wit explain...

A: FOR ANY QUERIES, PING ME     HAPPY LEARNING

Q: The market where existing securities are sold is:     a the primary market   b the secondary…

A: Securities are the financial items that are used to raise funds/capital from the public and private…

Q: A security that costs $89.90 will provide a return of 6.5 percent per year. If you want to keep the…

A: PV=today cost=$89.90FV=Future value=$143.80Interest rate=r=6.5%Required to find out the period…

Q: An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300…

A: The time value of money refers to the concept in finance that takes into account the effect of…

Q: How much would you be willing to pay today for an investment that would return P1,250 each year for…

A: The amount to be paid today is calculated as the present value of annuity

Q: which of the following investments that pay will $5000 in 12 years have a higher price today?

A: Present Value: It is the present worth of the future amount and the present value is computed by…

Q: An investment will pay $50 at the end of each of the next 3 years, $250 at the end of Year 4, $350…

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

Q: Suppose you estimate that the effective rate of return (EAR) you can generate from your investment…

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Q: You pay $4,000 for a security that you expect will be worth $30,000 exactly 8 years from now. The…

A: An investment's average rate of growth or fall over a given time period, usually one year, is…

Q: Calculating the Number of Periods You've been offered an investment that will pay you 7 percent per…

A: We know,  Future value = Present value x (1+r) ^ t where, r= periodic interest rate t = number of…

Q: You have an investment opportunity that promises to pay you $12,979 in four years. Suppose the…

A: GIVEN VALUES: Present Value: 9,5402Future Value: 12,9793Number of periods (n): 4 years Step 1: The…

Q: We have purchased a security with the following payment schedule: Year 1 2 3 Payment $100 S150 S400…

A: Rate of return refers to the percentage of earning from the investment or the purchase of the…

Q: a) You invest 155 000 TL for a year. At the end the year, you have 174 375 TL net in your account.…

A: We will apply the formula to calculate the real interest rate using the nominal interest rate and…

Q: Explain the nature of the potential lending losses associated with each of the following: default…

A:

Q: If you invest $4,874 in a long-term venture, you will receive $1,035 per year forever. Assuming your…

A: Formula to calculate the capitalized worth of investment is:CW = A/iwhere CW is the capitalized…

Q: Suppose a 65-year-old is contemplating retirement, expects to live for another 20 years, has a GHȼ1…

A: According to the rule, Because you have posted multiple questions,we will answer the first question…

Q: 11. How much is a dollar worth today if you can expect to receive it a year from now from an…

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…

Q: (Related to Checkpoint 5.6) (Solving for ) You are considering investing in a security that will pay…

A: Future value = $2000Period = 28 yearsDiscount rate = 12%

Q: what is its present value? Its future value?

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: Suppose Niles plans to invest $1,000. He can earn an effective annual rate of 6% on Security A,…

A: Investment = 1000   Security A Effective Annual Rate = 6% Security B Effective Annual Rate = 12%…

Q: You are considering two investment options. In option A, you have to invest RM2000 now and RM1000…

A: There are multiple methods used for analysis and evaluation of capital investment projects. Some of…

Q: If the interest rate is 15%, what is the present valueLOADING... of a security that pays you $1100…

A: Interest Rate = r = 15%Payment for year 1 = p1 = $1100Payment for year 2 = p2 = $1230Payment for…

Q: y solve the questi

A: The value of the investment at maturity can be calculated as follows :

Q: Suppose you just bought an annuity with 12 annual payments of $15,700 at a discount rate of 11.75…

A: Present value is the discounted value of the cash flows generated by the investment over the period…

Q: An investment will pay $50 at the end of each of the next 3 years, $200 at the end of Year 4, $350…

A: In first 3 years, the cash flow is same. So, annuity formula can be used to calculate present…

Q: What if I created a financial instrument which offered interest once every 2 years? To explore the…

A: Financial instrument is a financial security through which an amount is invested for the period.…

Q: Suppose you just bought an annuity with 11 annual payments of $16,400 at a discount rate of 13.5…

A: Present value refers to a concept of time, value, and money that is issued for estimating the…

Q: Assume you have the following asset and liability in your Balance Sheet: Asset - Bond A Modified…

A: Modified Duration is simply the slope of the price yield curve. Which shows the $ change in price…

Q: Your friend told you about an NFT (Non-fungible Token) that they think will be worth $1216 in 6…

A: Data given: FV=$1216 N=6 years Rate of return=16.2% Required: Calculate PV

Q: None

A:

Q: ou decide to invest $10.5k today into a security that will make fixed annual payments to you of…

A: Today's investment amount = $10,500Interest rate = 7.5%Annual payment = $2,152

Q: An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $400…

A: The Future value refers to the value of the future expected cash flow at future date. It is…

Q: You are considering investing in a security that will pay you $2,000 in 30 years. a. If the…

A: Future Value = fv = $2000Time = t = 30 years

Q: A security that is selling for $1,500 and promises to pay annual interest of $130 forever would have…

A: Given details are : Current price of Security = $1500 Annual Interest = $130 Security provides…

Q: An investment will pay $150 at the end of each of the next 3 years, $200 at the end of Year 4, $350…

A: Future Value = Present Value * (1+r)^nWhere,r = rate of interest per periodn = no. of compounding…

Q: You are considering an investment that will pay you $2,500 in one year, $5,000 in two years and…

A: Present Value refers to the discounted value of a single cash flow or multiple cash flows today…

Q: You are valuing an investment that will pay you nothing the first two years, $19,000 the third year,…

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

Q: Suppose that a 10-year T-note is purchased with a face value of $20,000 and a coupon rate of 3.4%…

A: Return means an additional amount earned over the invested amount. It is computed on the basis of…

Q: An investment will pay $50 at the end of each of the next 3 years, $250 at the end of Year 4, $400…

A: Given: The annual cash flows for the first 3 years is $50. The cash flow for year 4, year 5, and…