Question
If the market interest rate is 4%, then the value today of an investment that promisses...
If the market interest rate is
4%,
then the value today of an investment that promisses to pay
$1,300
per year at the end of each of the next
19
years is closest to:
A.
$23,904
B.
$10,244
C.
$17,074
D.
$20,489
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
19. I have an opportunity to invest $20,000 today at a compound interest rate of 6.4%...
19. I have an opportunity to invest $20,000 today at a compound
interest rate of 6.4% p.a compounded monthly. I intend to withdraw
the total account balance when it reaches $106,000. How long do I
need to hold the investment? Answer in months to two decimal
places.
20.
Greg makes an investment which is expected to pay 4% p.a.
interest, compounded annually. He invests $4,000 today. The value
of the investment at the end of nine years, if you make...
Q1: If the discount interest rate is 8%, the future value of a stream of cash...
Q1:
If the discount interest rate is 8%, the future value of a
stream of cash flows of $500 deposited into an account at the end
of each of the next 40 years, is closest to?
a. $23
b. $5,962
c. $6,439
d. $20,000
e. $129,528
Q2:
If the discount interest rate is 8%, the present value of a
stream of cash flows of $500 paid at the beginning of each of the
next 40 years, is closest to?
a....
An investor pays 100,000 today for a 4-year investment that returns cash flows of 40,000 at...
An investor pays 100,000 today for a 4-year investment that
returns cash flows of 40,000 at the end of each of years 2, 3 and
4. The cash flows can be reinvested at 4% per annum effective.
If the rate of interest at which the investment is to be valued
is 5.0%, what is the net present value of this investment
today?
Let P denote the NPV of the investment today:
(a) P < 0
(b) 0≤P <700
(c) 700≤P...
A savings plan requires 48 deposits of $503 per month commencing today. If the interest rate...
A savings plan requires 48 deposits of $503 per month commencing
today. If the interest rate is 8.1% p.a compounding monthly, the
value of the investment plan in exactly 4 years from today will be
closest to:
Select one:
a. $28593.92
b. $28402.21
c. $2453.79
d. $2269.93
A savings plan requires 48 deposits of $594 per month commencing today. If the interest rate...
A savings plan requires 48 deposits of $594 per month
commencing today. If the interest rate is 6.6% p.a compounding
monthly, the value of the investment plan in exactly 4 years from
today will be closest to
1.What is the present value of $14,000 ?received: a. 28 years from today when the interest...
1.What is the present value of $14,000 ?received:
a. 28 years from today when the interest rate
is 4% per? year?
b.14 years from today when the interest rate is
4% per? year?
c. 7 years from today when the interest rate is
4% per? year?
a. 28 years from today when the interest rate
is 4% per? year?
2. Your cousin is currently 8 years old. She will be going to
college in 10 years. Your aunt and uncle...
a.??What single investment made? today, earning 13?% annual? interest, will be worth ?$4900 at the end...
a.??What single investment made? today, earning 13?% annual?
interest, will be worth ?$4900 at the end of 12 ?years? b. What is
the present value of ?$4900 to be received at the end of 12 years
if the discount rate is 13?%? c.??What is the most you would pay
today for a promise to repay you ?$4900 at the end of 12 years if
your opportunity cost is 13?%? d. ?Compare, contrast, and discuss
your findings in part a through...
4) Determine the value at the end of four years of a $5,000 investment today that...
4) Determine the value at the end of four years of
a $5,000 investment today that pays a nominal annual
interest rate of 15%, compounded:
a)
Annually
b)
Semiannually
c)
Quarterly
d)
Monthly
5. You are considering buying a painting by a
local
artist for $1,200. You believe that this artist is just
about to be discovered, and think that five years from now the
painting will be worth $5,000. If you are
correct, what average annual return would you...
4) Determine the value at the end of four years of a $5,000 investment today that...
4) Determine the value at the end of four years
of
a $5,000 investment today that pays a nominal annual interest rate
of 15%, compounded:
a)
Annually
b)
Semiannually
c)
Quarterly
d)
Monthly
5. You are considering buying a painting by a
local
artist for $1,200. You believe that this artist is just
about to be discovered, and think that five years from now the
painting will be worth $5,000. If you are
correct, what average annual return would you...
What is the value today of $500 received in 3 years if the going rate of...
What is the value today of $500 received in 3 years if the
going rate of interest is 10% per year?
An individual has $3,000 today. What will that be worth in 7
years if the going rate of interest is 4% per year?
What is the present value of $250 received at the end of each
year for the next 8 years if the interest rate is 4.5% per year? I
need a break down of how to solve...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 15 minutes ago
asked 15 minutes ago
asked 17 minutes ago
asked 22 minutes ago
asked 41 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago