A $110,000 investment is made. Over a 5-year period, a return of $30,000 occurs at the end of the first year. Each successive year yields a return that is 9% less than the previous year's return. If money is worth 5, what is the equivalent present worth for the investment? _______
PW ($) = - 110,000 + 30,000 x P/F(5%, 1) + 30,000 x 0.91% x P/F(5%, 2) + 30,000 x 0.91 x 0.91 x P/F(5%, 3) + 30,000 x 0.91 x 0.91 x 0.91 x P/F(5%, 4) + 30,000 x 0.91 x 0.91 x 0.91 x 0.91 x P/F(5%, 5)
= - 110,000 + 30,000 x 0.9524 + 27,300 x 0.9070 + 24,843 x 0.8638 + 22,607.13 x 0.8227 + 20,572.49 x 0.7835
= - 110,000 + 28,572 + 24,761.1 + 21,459.38 + 18,598.89 + 16,118.54
= - 490.09
= - 490
A $110,000 investment is made. Over a 5-year period, a return of $30,000 occurs at the end of the first year.
A $75,000 investment is made. Over a 5-year period, a return of $30,000 occurs at the end of the first year. Each successive year yields a return that is 13 % less than the previous year’s return. If money is worth 5%, what is the equivalent present worth for the investment?
Q.30) A $100,000 investment is make over a 10-years period. A return of $23,000 occurs at the end of the first year. Each successive year yields a return that is $2,000 les than the pervious year's return. If the money is worth 8%, what is the equivalent present worth for the investment? What is the equivalent annual worth for the investment? What is the equivalent future worth for the investment?
A $10,000 investment would return a series of $3,000 year-end payments over the next 5 years if no inflation were present. However, an average inflation rate of 6 percent is expected to increase the payments accordingly. If the annual market rate of interest remains at 13 percent, determine the present equivalent worth of the investment
PROBLEM A $10,000 investment would return a series of $3,000 year-end payments over the next 5 years if no inflation were present. However, an average inflation rate of 6 percent is expected to increase the payments accordingly. If the annual market rate of interest remains at 13 percent, determine the present equivalent worth of the investment
Problem (5): An investment pays $ 30,000 after five years. a) If the annual inflation rate is 8%, what is the real value of the $30,000 in today's dollars? b) If the annual inflation rate is 8% and the real interest rate is 12%, what is the present worth of the investment return? c) What Actual-dollar interest rate is equivalent to a real interest rate of 12% when the annual inflation rate is 8% d) Compute the present worth using...
You made an investment over the past year, and your nominal return was 24.2%. Over the same year, the rate of inflation was 2.3%. What was the real rate of return for this investment?
Juan invests a total of $30,000 in two accounts. The first account earned a rate of return of 9% (after a year). However, the second account suffered a 5% loss in the same time period. At the end of one year, the total amount of money gained was $-100.00. How much was invested into each account? ş was invested at 9% and $ was invested at 5%.
If I have a 10 year investment with a 5% rate of return and a $1000 initial investment, what will happen if my inflation rate is bigger than my rate of return? . I will have less money than I invested after controlling for inflation B. I will have more money than I invested after controlling for inflation C. It depends on the tax rate D. It depends on my annual investment
Equal end-of-period semiannual payments of $500, increasing by $100 with each subsequent payment, are made to a fund paying 10 percent compounded continuously. What will the fund amount to after 7 years? What is the present worth equivalent of the total set of payments? What is the equal semiannual equivalent amount of the payments?
Swagelok Enterprises is a manufacturer of miniature fittings and valves. Over a 5-year period, the costs associated with one product line were as follows: first cost of $21,000, and annual costs of $19,000. Annual revenue was $30,000 and the used equipment was salvaged for $5,000. What rate of return did the company make on this product? The rate of return that the company made on the product is 30