If $10000 is invested in a certain business at the start of the year, the investor will receive $2700 at the end of each of the next 6 years. What is the present value of this business opportunity if the interest rate is 7% per year?
If $10000 is invested in a certain business at the start of the year, the investor...
If $80000 is invested in a certain business at the start of the year, the investor will receive $30000 at the end of each of the next 3 years. What is the present value of this business opportunity if the interest rate is 2.5% per year?
If $11,000 is invested in a certain business at the start of the year, the investor will receive $3,300 at the end of each of the next four years. What is the present value of this business opportunity if the interest rate is 6% per year? O A. $522 O B. $435 OC. $696 O D. $217
If $8,000 is invested in a certain business at the start of the year, the investor will receive $2,400 at the end of each of the next four years. What is the present value of this business opportunity if the interest rate is 4% per year? O A. $1,139 OB. $712 O C. $356 OD. $854
Need help, please show work for solutions. 1.) An investor just invested $10,000 in an investment that is expected to earn a 6% interest rate. Assuming the 6% annual return is realized, what will be the value of the investment at the end of 25 years? 2.) If you deposit $45,000 into a 5-year CD today earning 4% interest compounded quarterly, what would be the account balance be at the end of 5 years? 3.) A 22-year old college student...
how much needs to be invested today if your goal is to withdraw $600 at the end of each year for the next nine years. the first payment will be at the end of this year and $2700 ten years from today? please explain how to solve this with financial calculator interest rate is 6%
A new start-up company promises to pay an investor each quarter for the next two years. The company will pay $20,675.00 per quarter for the first four quarters, and then $25,775.00 per quarter for the following four quarters. If the investor wants a 11.68% APR return with quarterly compounding, what is the value of the investment opportunity today?
Question Three An investor deposits P2,000.00, then withdraws level annual payments starting one year after the deposit was made. Immediately after the 1th annual drawing, the investor has P400.00 left in the account. Calculate the amount of each withdrawal, given that the annual rate of interest is 8% Question Six i.) Assuming a rate of interest of 6 % pa, calculate the present value as at 1 January 2018 of the following annuities, cach with a term of 25 years:...
Problem 3 B) Pierluigi is trying to get a loan for $10,000 to start a business as a financial advisor and is trying to decide between several options. (15 points) DA $10,000 loan that needs to be paid back in 6 years with a 6 % nominal annual interest rate, compounded monthly i) A $10,000 loan that needs to be paid back in 7 years, which accrues no interest during the first 2 years but has a 10% effective interest...
Roxanne invested $490,000 in a new business 10 years ago. The business was expected to bring in $5,000 each month for the next 19 years (in excess of all costs). The annual cost of capital (or interest rate) for this type of business was 10% with monthly compounding. What is the value of the business today?
The owner of a business expects to make a net profit of $21,000 in the end of each year over the next five years and to be able to sell the business at the end of the fifth year for $120,000. The owner of the business also believes that the appropriate annual discount rate is 7%. Calculate the (present) value of the business. B) A small company received a $80,000 loan at a 7% annual interest rate and the loan...