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- How much must be invested now to receive $30,000 for 10 years if the first $30.000 is received one year from now and the rate is 8%?If you invest $8,300 per period for the following number of periods, how much would you have received at the end? (Use a Financial calculator to arrive at the answers. Round the final answers to the nearest whole dollar.)a. 12 years at 6 percent.Future value$b. 20 years at 9 percent.Future value$c. 20 periods at 14 percent.Future value$If you invest $9,400 per period for the following number of periods, how much would you have received at the end? ( Use a Financial calculator to arrive at the answers. Round the final answers to the nearest whole dollar.) a. 12 years at 6 percent. Future value $ b. 18 years at 8 percent. Future value $ c. 25 periods at 16 percent. Future value $
- I need a detailed explanation and assistance to solve this problem: An investment offers $6,800 per year for 20 years, with the first payment occuring one year from now. a) If the required return is 7%, what is the present value of the investment? b) at 7% return, what would the value be today, if the payments occured for 45 years? c) What would the present value be, if the payments occured for 70 years? d) What would the present value be, if the payments occured forever?Suppose you invest $2,000 today and receive $11,000 in five years. a. What is the internal rate of return (IRR) of this opportunity? b. Suppose another investment opportunity also requires $2,000 upfront, but pays an equal amount at the end of each year for the next five years. If this investment has the same IRR as the first one, what is the amount you will receive each year?Suppose you have a financial investment opportunity for which if you invest $2,000 today, you will receive $100 per year for 3 years plus $2,500 in the third year. Is this worthwhile in financial terms if the interest rate on the best alternative use of the funds is 10% How would I plug this into a finacial calculator? usin N, I/Y, PV, PMT,FV
- An investment promises to pay $5,000 at the end of each year for the next four years and $3,000 at the end of each year for years 5 through 8. Use Table II and Table IV or a financial calculator to answer the questions. Round your answers to the nearest cent. If you require a 9 percent rate of return on an investment of this sort, what is the maximum amount you would pay for this investment?$ Assuming that the payments are received at the beginning of each year, what is the maximum amount you would pay for this investment, given a 9 percent required rate of return?$An investment plan gives you 4 different options: Plan A: receive $325,000 today: Plan B: receive $20,000 for 25 years; Plan C: receive $10,000 per year for 25 years plus a one time payment of $100,000 in 25 years; or Plan D: receive $15,000 forever. If the current rate of return is 12%, what is the present value of Plan D? Above $300,000 $225,000 to $300,000 Below $75,000 $150,000 to $225,000 $75,000 to $150,000Suppose you invest $3,000 today and receive $10,000 in 25 years. a. What is the internal rate of return (IRR) of this opportunity? b. Suppose another investment opportunity also requires $3,000 upfront, but pays an equal amount at the end of each year for the next 25 years. If this investment has the same IRR as the first one, what is the amount you will receive each year? a. What is the internal rate of return (IRR) of this opportunity? The IRR of this opportunity is%. (Round to two decimal places.) b. Suppose another investment opportunity also requires $3,000 upfront, but pays an equal amount at the end of each year for the next 25 years. If this investment has the same IRR as the first one, what is the amount you will receive each year? The periodic payment that gives the same IRR is $ (Round to the nearest cent.)
- Use the savings plan formula to answer the following question. You put $400 per month in an investment plan that pays an APR of 6.5%. How much money will you have after 20 years? Compare this amount to the total deposits made over the time period. After 20 years the investment plan will contain $ (Do not round until the final answer. Then round to the nearest cent as needed.)1. You have an investment opportunity that promises to pay you $20,000 at a future date. You can earn 5% compounded semiannually on similar investments. How much would you be willing to invest assuming you will receive the amount at the end of (a) three years, (b) four years, or (c) five years? Formulas should include the =FV function and return a POSITIVE value. Future value Additional amount received at the end of each semiannual period Interest rate Compounded semiannually Investment Term 3 Years 4 Years 5 Years Present Value Investment Term 3 Years 4 Years 5 Years 2. If, in addition to the $20,000 future value, you receive an additional $1,000 at the end of each semiannual period, how much would you be willing to invest assuming the investment spans (a) three years, (b) four years, or (c), five years? Formulas should include the FV function and return a POSITIVE value. Additional amount received at the end of each semiannual period $20,000 $0 5% 2 Compounding periods per year…Computing the Present Value of a Single Amount Depp is reviewing an investment that will provide a payout of $108,000 in five years. If Depp considers a 5% interest rate (compounded annually) acceptable, what amount is Depp willing to pay for the investment today? Round your answer to the nearest whole number. Do not use a negative sign with your answer.