Question

Which variable can have the greatest impact in total return on investment, the number of times...

Which variable can have the greatest impact in total return on investment, the number of times the investment is compounded per year, the length of time the principal amount is invested, or the annual interest rate? Provide supporting evidence for your answer. In order to receive full credit for this discussion, you must complete the following tasks.

  1. Make a claim as to whether the number of times an investment is compounded per year, the length of time the principal amount is invested, or the annual interest rate has the largest impact on the total return of an investment.
  2. Provide evidence supporting your claim.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which variable can have the greatest impact in total return on investment, the number of times...
Which variable can have the greatest impact in total return on investment, the number of times the investment is compounded per year, the length of time the principal amount is invested, or the annual interest rate? Provide supporting evidence for your answer. In order to receive full credit for this discussion, you must complete the following tasks. Make a claim as to whether the number of times an investment is compounded per year, the length of time the principal amount...
Investment Risk & Return – A private investment club has a fund of 200,000 to invest...
Investment Risk & Return – A private investment club has a fund of 200,000 to invest in stocks. The stocks being considered have been classified into three categories: a. High Risk b. Medium Risk c. Low Risk The following rate of return per year can be expected: a. High Risk – 15% b. Medium Risk – 10% c. Low Risk – 5% The amount invested in Low Risk is to be two times the sum of the amount invested in...
1a) Lucy invested $950 five years ago. Her investment paid 7.2% interest compounded monthly. Lucy's twin...
1a) Lucy invested $950 five years ago. Her investment paid 7.2% interest compounded monthly. Lucy's twin sister Laurie invested $900 at the same time. But Laurie's investment earned 8% interest compounded quarterly. How much is each investment worth today? 1b) Carl is considering the purchase of an investment that will pay him $12,500 in 12 years. If Carl wants to earn a return equal to 7% per year (annual compounding), what is the minimum amount he should be willing to...
Number of years to provide a given return   In the information given in following​ case, determine...
Number of years to provide a given return   In the information given in following​ case, determine the number of years that the given ordinary annuity cash flows must continue in order to provide the rate of return on the initial amount. Initial amount Annual cash flow    Rate of return ​$33,200 ​$10,321 16​% The number of investment​ years, n​, is years????  ​(Round to two decimal​ places.) Number of years to equal future amount   For the following​ case, determine the number...
1a.)Calculate, to the nearest cent, the present value of an investment that will be worth $1,000...
1a.)Calculate, to the nearest cent, the present value of an investment that will be worth $1,000 at the stated interest rate after the stated amount of time. HINT [See Quick Example 4.] 5 years, at 5.2% per year, compounded weekly (52 times per year) 1b.) Find the effective annual interest rate r of the given nominal annual interest rate. Round your answer to the nearest 0.01%. 13% compounded monthly 1c.) Compute the specified quantity. You take out a 5 month,...
1-What should an investor pay for an investment property promising a $200,000 return after 10 years...
1-What should an investor pay for an investment property promising a $200,000 return after 10 years if a 7% annual return (compounded annually) on investment is projected? 2-Given the following information on a 30-year fixed-payment fully-amortizing loan, determine the remaining balance that the borrower has at the end of five years. Interest Rate: 4%, Monthly Payment: $3,000 3-An investor has an opportunity to invest in a rental property that will provide net cash returns of $2,000 per month for 10...
Mastery Problem: Time Value of Money Time value of money Due to both interest earnings and...
Mastery Problem: Time Value of Money Time value of money Due to both interest earnings and the fact that money put to good use should generate additional funds above and beyond the original investment, money tomorrow will be worth less than money today. Simple interest Ringer Co., a company that you regularly do business with, gives you a $18,000 note. The note is due in three years and pays simple interest of 5% annually. How much will Ringer pay you...
You have an investment from which you can receive your return in one of the following...
You have an investment from which you can receive your return in one of the following ways: Option A: An annuity with payments of $100,000 each for the next ten years, with the first payment commencing today. Option B: A lump-sum one-time payment of $1,005,757 after five years. The interest rate is 6%, compounded annually. Which option has the greater present value? Option B. Both options have the same present value. Option A.
1) Your return objective represents __________. Select one: a. your investment risk. b. the annual return...
1) Your return objective represents __________. Select one: a. your investment risk. b. the annual return needed to meet your goals. c. your time horizon. d. the amount you have to invest to start with. e. your risk tolerance. 2) Your return objective represents __________. Select one: a. your investment risk. b. the annual return needed to meet your goals. c. your time horizon. d. the amount you have to invest to start with. e. your risk tolerance. 3) The...
A) A client just deposited ¢7,000,000 in one of your investment funds which is currently earning...
A) A client just deposited ¢7,000,000 in one of your investment funds which is currently earning 10% return. The bank has advised the client to deposit an additional ¢4,000,000 at the end of each of the next three years. The client would like to know how much the total amount in this investment will be in three years’ time. Kassim has just been offered a job at ¢600,000 a year. He anticipates his salary will increase by 6% annually until...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT