You are offered an investment that will give you $28083 in 20 years in exchange for $6503 today. What is your expected rate of return on this investment?
You are offered an investment that will give you $28083 in 20 years in exchange for...
Q29. You are offered an investment that requires you to put up $5.000 today exchange for $12,000 15 years from now. What is the annual rate of return on this investment? A. 3.81% B. 2.40% C. 4.67% D. 6.01% E. 15.00% Q30. At the end of each month for the next ten years you will receive cash flows of $50. If the appropriate discount rate is 7.2%, compounded monthly (i.e., the APR is 7.2%), how much would you pay for...
Your friend offers to give you $450 in 20 years, $320 in 10 years, or $217 today. Assuming a 4% market rate of return which would you choose? (circle one) $450 in 20 years $320 in 10 years $217 today What if the market rate of return is 2%: $450 in 20 years $217 today $320 in 10 years $320 in 10 years $217 today What if the market rate of return is 7%: $450 in 20 years
Eight years ago, you gave Laura $1000 in exchange for her promise to give you $4021 today. What compound annual rate of return was Laura promising? unfortunately, today Laura told you that she can only give you $700. If you get $700 today, what compound annual rate of return will you earn over the eight year period?
1. Your godmother has offered to give you $1,000,000 in 20 years. Because of your incredulity, your godmother has volunteered to deposit the present value of the $1,000,000 in a trust managed by a bank or insurance company of your choice. How much must your godmother deposit if the investment earns 5 percent? 10 percent? Show Inputs. [2 points) The higher the rate of interest: A. the larger the present value of a future sum of money B. the smaller...
9. You are offered an investment with a quoted annual interest rate of 6.75% with quarterly compounding of interest. What is your effective annual interest rate? 10. You are offered an annuity that will pay $15,000 per year for 20 years (the first payment will occur one year from today). If you feel that the appropriate discount rate is 3%, what is the annuity worth to you today? 11. If you deposit $6,500 per year (each deposit is made at...
You are offered an investment opportunity with the guarantee that your investment will double in 5 years. Assuming annual compounding, what annual rate of return would this investment provide?
(Present-value comparison) You are offered $1,400 today, $5,000 in 12 years, or $29,000 in 20 years. Assuming that you can earn 13 percent on your money, which offer should you choose? a. What is the present value of $29,000 in 20 years discounted at 13 percent interest rate?
You are offered the following investment: investing $500 today and receiving $600 in 5 years. What is the implied interest rate for this investment? You can also deposit the money into a bank account that pays 4% annually. Suppose the risks are similar, which investment would you choose?
You are offered an investment that will pay you the following amounts $9979 today $2655 per year for the next 8 years $3359 per year for the following 2 years $5145 per year for the following 1 years $14572 per year for the final 2 years Assuming you earn a 4.2% rate of return during the entire period, how much is this investment worth TODAY? Round answer to the nearest dollar.
Your parents have offered to give you $10,000 for each of the next 5 years. You feel like you could use that money now, so you wan to figure out how much it is worth today. If you think that the relevant interest rate is 5%, what is the present value of the 5 payments?