You have $150,000 to invest today. You found a deal that will pay you $300,000 if you wait 20 years before you withdraw the money? What is the implied rate of interest in you invest and wait 20 years?
3.2%
3.5%
5.1%
6.2%
6.8%
Assume you have $5,000 today in a bank savings account, you plan to add $2,000 one year from now and $3,000 two years from now. How much will you have in the bank at the end of year 2 if you earn 4.5% annual interest?
$10,000
$10,080
$10,320
$10,550
$10,890
You have $150,000 to invest today. You found a deal that will pay you $300,000 if...
You have $150,000 to invest today. You found a deal that will pay you $300,000 if you wait 20 years before you withdraw the money? What is the implied rate of interest in you invest and wait 20 years? Group of answer choices 3.2% 3.5% 5.1% 6.2% 6.8% Please help urgently.
CONCEPTS OF FUTURE AND PRESENT VALUE Exercise 1: You have won a lottery of $300,000. You have two options to consider: 1. Invest the money at the local bank now for five years and earn 12% interest per year. 2. Wait until next year when interest rate increase to 14% per year and invest the money for four years. Exercise 2: Suppose you invest $2,500 in a bank at the rate of 14 percent per year. What will be the...
How much should you invest each month in order to have $300,000 if your rate of return is 7% compounded monthly and you want to achieve your goal in 40 years? $ How much interest will you earn? $ How much should you invest each month in order to have $300,000 if you want to achieve your goal in 20 years? $ If you deposit the amount you need to achieve your goal in 20 years, how much will your...
Question Two: You have an opportunity to invest in a deal that will make yearly payments forever. These payments will grow at a rate of 5% per year. You will receive your first payment of $2000 one year from today. Due to the risks associated with this investment, you will require a return of 10%. How much are you willing to pay for this deal today? (KN1:3.5 marks)
Question Two: You have an opportunity to invest in a deal that will make yearly payments forever. These payments will grow at a rate of 5% per year. You will receive your first payment of $2000 one year from today. Due to the risks associated with this investment, you will require a return of 10%. How much are you willing to pay for this deal today? (KN1:3.5 marks)
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How much would you have to invest today in the bank at an interest rate of 10% to have an annuity of $5600 per year for 7 years, with nothing left in the bank at the end of the 7 years?
Help with finance You've decided to invest $1200 today in a local bank that is advertising a savings rate of 8% APR- guaranteed for 5 years. After 5 years, you plan to pull all of the money out of the bank, and invest with your Uncle Bob, who says he'll pay you an interest rate of 6% APR for each of the next 7 years. After that, you plan to withdraw all of your money from Uncle Bob, and simply...
If you invest $1,907 today at an interest rate of 8.51 percent, compounded daily, how much money will you have in your savings account in 27 years?
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