Question

An investment that currently sells for $200 makes payments every year forever, which grow annually at a constant rate. If the annual return on this investment is 6% and next payment amount is $10, what is the constant rate at which the payments grow annually?

At an annual interest rate of 7%, how many years does it take to triple your money?

Today, you open a new savings account and deposit $5,000. No other deposits or withdrawals are made to your account. Assume you will earn 3% simple interest per year. How much will your investment be worth in 20 years?

Assume the appropiate discount rate is 7%. A company will receive a payment every year forever, which will grow at 1% annually. The amount of the first payment will be $6,000. What is the current value of this series of payments?

Answer 1

As per the Chegg policy, only 1 question per submission can be solved. Here comes the solution for the first question

Value of investment today	$ 200.00
Annual return	6%
Next payment	$   10.00
Growth rate	G
Value of investment=	Next payment/(Return - Growth)
200=	10/(6%-g)
(6%-g)=	10/200
(6%-g)=	5.00%
G=	6%-5%
Growth rate=	1.00%