In: Finance
1) 3 year(s) ago, Trang invested 67,535 dollars. She has earned and will earn compound interest of 4.3 percent per year. In 1 year(s) from today, Isaac can make an investment and earn simple interest of 8.45 percent per year. If Isaac wants to have as much in 9 years from today as Trang will have in 9 years from today, then how much should Isaac invest in 1 year(s) from today?
2) 1 year(s) ago, Theo invested 78,151 dollars. He has earned and will earn 14.96 percent per year in compound interest. If Vivian invests 179,892 dollars in 3 year(s) from today and earns simple interest, then how much simple interest per year must Vivian earn to have the same amount of money in 8 years from today as Theo will have in 8 years from today? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.
3) What is X if X equals the value of investment A plus the value of investment B? Investment A is expected to pay 23,800 dollars in 7 year(s) from today and has an expected return of 10.87 percent per year. Investment B is expected to pay 25,200 dollars in 6 year(s) from today and has an expected return of 5.17 percent per year.
4) Sasha owns two investments, A and B, that have a combined total value of 47,200 dollars. Investment A is expected to pay 29,100 dollars in 5 year(s) from today and has an expected return of 9.36 percent per year. Investment B is expected to pay X in 4 years from today and has an expected return of 12.88 percent per year. What is X, the cash flow expected from investment B in 4 years from today?
5) Sasha owns two investments, A and B, that have a combined total value of 43,900 dollars. Investment A is expected to pay 28,100 dollars in 3 year(s) from today and has an expected return of 10.89 percent per year. Investment B is expected to pay 30,881 in 2 years from today and has an expected return of R per year. What is R, the expected annual return for investment B? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.