You purchase an investment that pays $1,000 each year for the next 20 years. If the...
An investment pays $1,000 at the end of year 1, $1,000 at the end of year 2 $2,000 at the end of year 3. $3,000 at the end of year 4, and $5,000 at the end of year 5. If the interest rate is 5%, what is the present value of this series of payments? O $11,015.77 O $10,943.27 O $9,972.82 O $12,000.00
You buy a share of stock that pays $10 in dividends for the next 5 years and nothing after that. If the interest rate is 5.5%, the present value of this series of payments is O $21.21 O $35.67 $55.81 O $42.70
An investment pays $10,000 at the end of year 1, $15,000 at the end of year 2, and $20,000 at the end of year 3. If the interest rate is 3.5%, what is the present value of this series of payments? O $42,150.51 O $45,000.00 O $40,183.29 $43,381.43
What would you pay for an investment that pays you $25000 at the end of each year for the next twenty years? Assume that the relevant interest rate for this type of investment is 12%.
You expect to receive $1,000 at the end of each of the next 3 years. You will deposit these payments into an account that pays 12 percent compounded annually. What is the future value of these payments, that is, the value at the end of the third year? a. $3,000.00 b. $3,310.00 c. $3,374.40 d. $3,400.96 e. $3,438.27
You are going to invest $1,000 at the end of each year for five years. Given an interest rate, you can find the future value of this investment by: 1. Adding the cash flows together and finding the future value of the sum. II. Applying the proper future value factor to each cash flow, then adding up these future values. III. Finding the present value of the sum of the payments. IV. Finding the present value of each cash flow,...
An investment pays you $20,000 at the end of this year, and $10,000 at the end of each of the four following years (i.e., of year 2, 3, 4, 5). What is the present value (PV) of this investment, given that the interest rate is 4% per year?
You want to purchase a 1 year treasury bill that pays you $1,000 at maturity. If the current market rate of interest is 0.75% annually, what will you need to pay for the treasury? How much interest will you earn (in dollars) on the investment?
You want to purchase a 1 year treasury bill that pays you $1,000 at maturity. If the current market rate of interest is 0.75% annually, what will you need to pay for the treasury? How much interest will you earn (in dollars) on the investment?
Suppose you receive $100 at the end of each year for the next three years. a. If the interest rate is 10%, what is the present value of these cash flows? b. What is the future value in three years of the present value you computed in (a)? c. Suppose you deposit the cash flows in a bank account that pays 10% interest per year. What is the balance in the account at the end of each of the next...