Question

In: Finance

a) You invest $117 today and expect to receive $183 in 13 years. What interest rate...

a) You invest $117 today and expect to receive $183 in 13 years. What interest rate are you expecting to earn? (Put rate in 4 decimal places.)

b) You invest $291 at the end of each year for 25 years in an account earning 6.9%. How much do you expect to be able to withdraw in 25 years? (Note this is an ordinary annuity.)

Solutions

Expert Solution

Calculation is shown below:

Working is given below:


Related Solutions

If you invest 3000 today and expect to profit $200 a year for 10 years what...
If you invest 3000 today and expect to profit $200 a year for 10 years what id the IRR on the investment?
You will receive $12000 over the next 4 years. You can expect a 12% interest rate....
You will receive $12000 over the next 4 years. You can expect a 12% interest rate. You will receive $6000 in year 1 and your amount will decrease by $2000 each year. What is the present value of your money?
4 You are planning to invest $2,500 today for three years at a nominal interest rate...
4 You are planning to invest $2,500 today for three years at a nominal interest rate of 9 percent with annual compounding. What would be the future value of your investment? Now assume that inflation is expected to be 3 percent per year over the same three-year period. What would be the investment's future value in terms of purchasing power? What would be the investment's future value in terms of purchasing power if inflation occurs at a 9 percent annual...
1a) You have an opportunity to invest $25000 today and receive $35000 in 4 years. What...
1a) You have an opportunity to invest $25000 today and receive $35000 in 4 years. What is the expected annual return in percentage terms (or yield)? b) Regarding your answer in (a), please explain if your answer has comprehended the effect of the investment’s value compounding in value or whether you have used a methodology that ignores compounding. In other words is your answer in (a) above a compound return or not? c) You invested $25000 in the ordinary shares...
Assume you invest $13,880 today for 9 years at a 4.1% continuously compounded rate of interest....
Assume you invest $13,880 today for 9 years at a 4.1% continuously compounded rate of interest. How much money would you have at the end of the 9 years after the effects of compounding?
You expect to receive $1,000 in one year, and $4,000 in three years. If the interest...
You expect to receive $1,000 in one year, and $4,000 in three years. If the interest rate is 12% compounded monthly, what is the present value of all cash flows? Group of answer choices $3,739.98 $5,600.00 $6,739.71 $3,683.15
How much would you have to invest today to receive: a. $100,000 in 6 years at...
How much would you have to invest today to receive: a. $100,000 in 6 years at 12 percent? b.$100,000 in 15 years at 12 percent? c.$10,000 at the end of each year for 25 years at 12 percent d.$75,000 at the end of each year for 25 years at 12 percent?
How much would you have to invest today to receive a. $15,000 in 8 years at...
How much would you have to invest today to receive a. $15,000 in 8 years at 6 percent? b. $20,000 in 12 years at 8 percent? c. $6,000 each year for 5 years at 10 percent? d. $50,000 each year for 20 years at 12 percent?
If you invest $81,000 today at 10% interest for 19 years, you will have $_________ in...
If you invest $81,000 today at 10% interest for 19 years, you will have $_________ in 19 years. (Do not include the dollar signs ($). Round your answers to 2 decimal places. (e.g., 32.16))
You will receive $7,600 three years from now. The discount rate is 13 percent. a. What...
You will receive $7,600 three years from now. The discount rate is 13 percent. a. What is the value of your investment two years from now? Multiply $7,600 × .885 (one year’s discount rate at 13 percent). (Round your answer to 2 decimal places.) b. What is the value of your investment one year from now? Multiply your rounded answer to part a by .885 (one year’s discount rate at 13 percent). (Round your answer to 2 decimal places.) c....
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT