How much money should you be willing to pay now for a guaranteed $500 per year for 10 years starting next year, at a rate of return of 15% per year? *
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityan investment offers 3850 per year for 15 years, with the first payment occurring one year from now. If the required return is 6 percent, what is the value of the investment? What would the value be if the payments occurred for 40 years? For 75 years? Forever?How much money should you invest now to ensure $600 per year for 9 years starting next year. The interstate is 16% per year?
- An investment offers $6500 per year forever, with the first payment occurring one year from now. If the required return is 7 per cent, What would the value be?If you are considering the purchase of a consol that pays $60 per year forever, and the rate of interest you want to earn is 10% per year, how much money should you pay for the consol?How much should be invested each year for 10 years to provide you with $7000 per year for the next 15 years? Assume a 4.9% interest rate. (Round your final answer to two decimal places.
- You invest in a project that is expected to pay you $960 every year forever. If the first payment to you occurs 3 years from today and the discount rate is 3.8%, then what is its value today (Round to the nearest dollar).What is the present value of $3,000 paid each year forever, assuming a discount rate of 5% and the first payment occurs one year from now? Equivalently: What amount would you have to invest today at an interest rate of 5% to generate an annual payment of $3,000 forever?What is the maximum amount you should pay today for an investment that pays a single future cash flow of $25,000 in 5 years if the appropriate interest rate is 2% compounded semiannually?
- You expect to receive a one-time payment of $1,000 in 10 years and a second payment of $1,500 in 15 years. The annual interest rate is 3%. If you invest the amount that you'll receive in 10 years, how much money will you have in year 15 (including the cash flow in year 15)?If you want to receive $1,000 each year for the next three years how much should you invest today? Assume the annual interest rate to be 10%.You are offered an investment that requires you to put up $5,000 today in exchange for $12,000 10 years from now. What is the annual rate of return on this investment?