Rate on the investment is calculated using the RATE function:-
=RATE(nper,pmt,pv)
=RATE(7,2400,-9802)
=15.62%
What is the rate of return on an investment of $9,802 if the investor will receive...
In return for an initial investment of GH¢10,000, an investor will receive GH¢6,000 in a year’s time and GH6,600 in two years’ time. Find the internal rate of return on this investment.
An investor pays $170,000 for a mine that will produce level annual revenue for 25 years. What should the level annual revenue be (received at the end of each year) if the investor is to receive 4% annual return on the investment while recovering the principal in a sinking fund earning 2.5% per year?
what is the rate of return on an investment of $16,278 if the company expects to receive $3,000 per year for the next 10 years
Rate of return and investment choice Clare Jaccard has 59.000 to invest. Because she is only 25 years old, she is not concerned about the length of the investment's life. What she is sensitive to is the rate of return she will cam on the investment with the help of her financial advisor, Clare has holated for equally risky investments, each providing a single amount at the end of its life as shown in the flowing table. Al of the...
D) $17.450 6) For a given stated interest rate, an investor would receive a greater future value with daily compounding as opposed to monthly compounding TRUD OR FALSE *7) An investment is expected to yield $300 in three years, 5500 in five years, and $300 in seven years. What is the present value of this investment if our opportunity rate is 5%? A) $735 B) $864 C) $885 D) $900 *8) What is the present value of $1,000 per year...
Interest rate (with changing years). Keiko is looking at the following investment choices and wants to know what annual rate of return each choice produces. a. Invest $360.00 and receive $899.85 in 11 years. b. Invest $2,600.00 and receive $11,938.46 in 17 years. c. Invest $31,950.29 and receive $140,000.00 in 26 years d. Invest $31,820.16 and receive $1,400,000.00 in 50 years. a. What annual rate of return will Keiko earn if she invests $360.00 today and receives $899.85 in 11...
Interest rate (with changing years). Keiko is looking at the following investment choices and wants to know what annual rate of return each choice produces. a. Invest $440.00 and receive $681.48 in 9 years. b. Invest $3,800.00 and receive $10,990.61 in 17 years. c. Invest $31,414.64 and receive $110,000.00 in 26 years d. Invest $34,194.19 and receive $1,200,000.00 in 40 years. a. What annual rate of return will Keiko earn if she invests $440.00 today and receives $681.48 in 9...
(Expected rate of return and risk) Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on the risk (as measured by the standard deviation) and return? Common Stock A Common Stock B Probability Return Probability Return 10% 0.35 0.25 -4% 14% 7% 0.30 0.25 16% 0.35 20% 0.25 23% 0.25 %. (Round to two decimal places.) a. Given the information in the table, the expected rate of...
You will receive $4,500 three years from now. The discount rate is 13 percent. a. What is the value of your investment two years from now? Multiply $4,500 × .885 (one year’s discount rate at 13 percent). (Round your answer to 2 decimal places.) b. What is the value of your investment one year from now? Multiply your rounded answer to part a by .885 (one year’s discount rate at 13 percent). (Round your answer to 2 decimal places.)
Historical Realized Rates of Return You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching, Stock A and Stock B, have the following historical returns: Year 2014 2015 2016 2017 2018 -22.80% 39.25 24.75 -6.75 34.50 -5.50 % 20.30 -10.20 48.10 16.25 a. Calculate the average rate of return for each stock during the 5-year period. Do not round Intermediate calculations. Round your answers to two decimal places. Stock A:...