You recently invested $12,000 of your savings in a security issued by a large company. The secu-rity agreement pays you 7 percent per year and has a maturity two years from the day you pur-chased it. What is the total cash flow you expect to receive from this investment, separated into the return on your investment and the return of your investment?
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You recently invested $12,000 of your savings in a security issued by a large company. The secu-
rity agreement pays you 7 percent per year and has a maturity two years from the day you pur-
chased it. What is the total
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- You want to invest $24,000 and are looking for safe investment options. Your bank is offering you a certificate of deposit that pays a nominal rate of 6% that is compounded quarterly. What is the effective rate of return that you will earn from this investment?Suppose you have the opportunity to make an investment in a real estate venture that expects to pay investors $750 at the end of each month for the next eight years. You believe that a reasonable return on your investment should be an annual rate of 15 percent compounded monthly.a. How much should you pay for the investment?b. What will be the total sum of cash you will receive over the next eight years?c. What do we call the difference between (a) and (b)?Suppose you have the opportunity to make an investment in a real estate venture that expects to pay investors 750 dolar at the end of each month for the next eight years . You believe that a reasonable return on your investment should be an annual rate of 15 percent compounded monthly.a. How much should you pay for the investment?b. What will be the total sum of cash you will receive over the next eight years?c. What do we call the difference between (a) and (b)?
- You have just received a windfall from an investment you made in a friend's business. He will be paying you $17,752 at the end of this year, $35,504 at the end of the following year, and $53,256 at the end of the year after that (three years from today). The interest rate is 11.7% per year. a. What is the present value of b. What is the future value of your windfall in three years (on the date of the last payment)? your windfall? a. What is the present value of your windfall? The present value of your windfall is $ (Round to the nearest dollar.) b. What is the future value of your windfall in three years (on the date of the last payment)? The future value of your windfall in three years is $ (Round to the nearest dollar.)You have just received a windfall from an investment you made in a friend's business. He will be paying you $22,654 at the end of this year, $45,308 at the end of the following year, and $67,962 at the end of the year after that (three years from today). The interest rate is 14.1% per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)?You have just received a windfall from an investment you made in a friend's business. He will be paying you $11,917 at the end of this year, $23,834 at the end of the following year, and $35,751 at the end of the year after that (three years from today). The interest rate is 4.7% per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)? a. What is the present value of your windfall? The present value of your windfall is $ (Round to the nearest dollar.) b. What is the future value of your windfall in three years (on the date of the last payment)? The future value of your windfall in three years is $ (Round to the nearest dollar.)
- You have just received a windfall from an investment you made in a friend's business. She will be paying you $32,711 at the end of this year, $65,422 at the end of next year, and $98,133 at the end of the year after that (three years from today). The interest rate is 11.2% per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)?You have just received a windfall from an investment you made in a friend's business. She will be paying you $21,389 at the end of this year, $42,778 at the end of next year, and $64,167 at the end of the year after that (three years from today). The interest rate is 11.1% per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)? a. What is the present value of your windfall? The present value of your windfall is $. (Round to the nearest dollar.)You have just received a windfall from an investment you made in a friend's business. She will be paying you $11,730 at the end of this year, $23,460 at the end of next year, and $35,190 at the end of the year after that (three years from today). The interest rate is 8.1% per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)? a. What is the present value of your windfall? The present value of your windfall is $ (Round to the nearest dollar.) iew an example *** Get more help - Clear all
- An investment pays you $100 at the end of each of the next 3 years. The investment will then pay you $200 at the end of year 4, $300 at the end of year 5, and $500 at the end of year 6. If the rate of interest earned on the investment is 8%, what is the present value of this investment? What is its future value? How do you solve this with excel?Suppose you receive$130 at the end of each year for the next three years. a. If the interest rate is10%, what is the present value of these cash flows? b. What is the future value in three years of the present value you computed in(a)? c. Suppose you deposit the cash flows in a bank account that pays 10%interest per year. What is the balance in the account at the end of each of the next three years (after your deposit is made)? How does the final bank balance compare with your answer in (b)?Assume you just received a monetary gift of $1,000, and decided to invest it in a certificate of Deposit (CD) for 5 years, at a steady annual yield of 3.5 percent. How much would be the total value of your investment at the maturity date?