You plan to invest in securities that pay 8.6%, compounded annually. If you invest $5,000 today, how many years will it take for your investment to grow to $8,266.40?   a. 6.09 years     b. 5.59 years     c. 11.63 years     d. 11.94 years     e. 12.19 years

Q: An investor has ​$7500 to invest in either a bond that matures in 6 years or a business that will…

A: Future value refers to the return generated from the investment made for a given period of time.…

Q: Suppose you invest $50 each month into a mutual fund. You reinvest distributions. At the end of 5…

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Q: The current income is ? The investor would experience a Gain, Loss, or Neither? The total return…

A: A bond refers to the instrument which obligates the issuer to pay pre-defined interest to the buyer.…

Q: You deposit the following at the end of each year into a growth mutual fund that earns 11 percent…

A: Working note:

Q: 9 You are planning to save for retirement over the next 20 years. To do this, you will inves $1,200…

A: Value in 20 years for stock account:

Q: x bought a securities a year ago by means of a cash payment of 5,000,000 and 2,500,000 / year for…

A: Given:Security bought one year ago.Cash payment=5000000+2500000=7500000Total time period is 5…

Q: Suppose you invest $8,000 in a mutual fund in one year and $9,500 in two years. If the fund pays 7%…

A: Investment The process of investing money in financial assets in order to get a return is called…

Q: You plan to invest $20,000.00 today in an equity unit trust fund expected to pay an average return…

A: Concept. Future value = A ( 1+r)n Where, A = amount invested. r = interest rate n = time period.

Q: You plan to invest in securities that pay 15.0%, compounded annually. If you invest $2,000 today,…

A: The concept of time value of money will be used here. When an amount is invested today then it grows…

Q: You are planning your retirement in 10 years. You currently have $164,000 in a bond account and…

A: TVM is the concept that considers money's interest-earning capacity, which makes money earned…

Q: explain what is Net profit margin with a comprehensive example

A: The objective of this question is to understand the concept of Net Profit Margin, a key…

Q: Number of periods: You invest $150 in a mutual fund today that pays 9 percent interest annually. How…

A: Future Value formula used: FV= PV(1+r)^n FV= future value = 300 (amount double = 150*2) PV= present…

Q: What is the current value of a security that pays $165,500 per year for 10 years if similar…

A: The present value of all cash flows can be used to calculate the current value of an investment.

Q: Horry is depositing $979.34 into an investment account at the end of every month. After 5 yeors and…

A: Deposits means the amount paid by the person in a specific account or an investment. When a person…

Q: You invested 15,334.80 into an account that pays 4.40% interest.  How much money will you have in 17…

A: Future value (FV) is the value of an investment or cash flow at a specific point in the future,…

Q: Acme Insurance is offering you a perpetuity that will pay you and your heirs $500,000 per year…

A: A perpetuity is a type of financial instrument or investment that provides a fixed stream of cash…

Q: You plan to invest in securities that pay 8.6%, compounded annually. If you invest $5,000 today, how…

A: The objective of the question is to find out how many years it will take for an investment of $5,000…

Q: You purchased a bond at a price of $800. In 15 years when the bond matures, the bond will be worth…

A: A bond reveals the debt instrument that allows the issuer to raise funds from the public. The holder…

Q: If you invest P5,000 in a mutual fund extending a total annual return of 8% and you re-invest the…

A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…

Q: You would like to know how much you need to save and invest monthly to have $1 million in your…

A: Future value is a financial term that refers to the value of an investment or asset at a specific…

Q: Assume you plan to retire in 34 years.  If you invest $280.00 per month in the broad U.S. equity…

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

Q: You deposit $12,000 per year over 15 years in a stock portfolio. After that you do not make any…

A: Future value (FV) is a financial concept that represents the value of an investment or asset at a…

Q: Assume you invest $19,000 today. How much will you have in six years at an interest rate of​ 9%?…

A: Formula to compute the Future value is as follows: FV=PV(1+r)n where, FV=Future valuePV =Present…

Q: You plan to invest in bonds that pay 3.25%, compounded annually. If you invest $10,000 today, how…

A: Given: Interest rate is 3.25% Present value $10,000 Future value = $30,000 Number of years =?

Q: You are considering investing in a savings bond that will pay $50,000 in 6 years. If the competitive…

A: A Bond refers to a concept that is defined as an instrument that represents the loan being made by…

Q: ou plan to invest in securities that pay 8.0%, compounded annuallyIf you invest $5,000 today, ho…

A: This is based on the concept of time value of money.   Amount put aside today or invested today…

Q: You are planning your retirement in 10 years. You currently have $173,000 in a bond account and…

A: Retirement refers to the period in a person's life when they choose to stop working and typically…

Q: You would like to know how much you need to save and invest monthly to have $1 million in your…

A: A constant and fixed sum of cash flow in each period is an annuity. Here the future desired value or…

Q: What is the current value of a security that pays $165,500 per year for 10 years if similar…

A: The current value of security can be calculated as present value of all cash flows

Q: If an investor intends to double $25,000 by investing in a bank that pays 7% interest per year,…

A: The time required to double the investment can be calculated by using the formula of future value .…

Q: You purchased a bond at a price of $2,100. In 30 years when the bond matures, the bond will be worth…

A: Rate of return is amount of profit earned on investment based on initial investment.Purchase price…

Q: Assume that you own an annuity that will pay you $15,000 per year for 12 years, with the first…

A: An annuity refers to a series of cash flows occurring at regular intervals. Here the cash flow…

Q: You purchased a bond at a price of $1,400. In 25 years when the bond matures, the bond will be worth…

A: Sure, here's the calculation presented in a clear format:Calculate Total Return:Ending Value (Value…

Q: Question: Assume you can earn 7% on the investments described below. How much money would each…

A: Annuity An annuity is a term used to refer to a series of payments that are made by an investor to a…

Q: You are opening an investment account that will earn 6.5% compounded annually.  You will invest…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: You expect to receive $3.500 upon your graduation and will invest your windfall at an interest rate…

A: It can be calculated using=NPER(rate,pmt,pv,[fv],[type])Rate The interest rate for the loan.Nper…