Suppose you are 20 years old today and want to have OMR 500000 saved by the time you reach 30 years. If you receive 5% interest on your money how much would you have to invest to reach your goal? Select one: O a. 317428.50 b. 306959.63 O c. None O d. 594620.15 O e. 628520.75
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A: The present value function or concept can be used to determine the present value of a future sum or…
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A: Present value of annuity (PVA) formula: PVA=A×1-11+rmn×mrm A=annuity r=rate n=number of years…
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A: Future value required (FV) = $ 2,500,000 Interest rate (r) = 8% Number of annual payments (n) = 15
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A: Solution: An equal amount withdrawn every period at end of period is called ordinary annuity.…
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A: PMT signifies the periodic payment.
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A: Amount needed at the retirement (X) = P 10000000 n = 45 years r = 15%
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A: Data given: A1 = $5000 g= 3% i= 10% n= 20 years
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A: Annual payment (P) = $ 24000 Number of annual payments (n) = 25 Interest rate (r) = 8.5%
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A: As you have asked multiple questions, we will solve the first question as per the policy presented…
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Q: suppose you are planning to buy a home in 8 years from now that costs you 59933 OMR, How much should…
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A: The rate of return can be calculated as: R= (Maturity amount- Initial investment)/ Initial…
Q: suppose you are planning to buy a home in 8 years from now that costs you 52387 OMR, How much…
A: Given:
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A: The present value is the value of the sum received at time 0 or the current period. It is the value…
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A: future value = present value *(1+rate)^n future value = 5000 * 1.090515
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Q: You decide to invest $100 into a savings account with an interest rate of 2% annually in2015. The…
A: present value in savings account = $100 interest rate annually = 2% future value = $120 time period…
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A: Present Value: The present value is the value of the sum received at time 0 or the current period.…
Q: 26 27 28 29 30 5% I 7% I5% 7% 5% I 7% 5% I %7 2000 1000 2000 1000 1000 2000 1000 2000 1000 2.
A: Sum of Geometric Progression =[a(rn−1) ] / ( r−1 ) a = first term r = common ratio
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A: Present Value: It is the present worth of the cash flows or a sum of money to be paid/received in…
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A: Future value of money refers to the value of money on a particular date in the future. In other…
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A: Future value=Present Value(1+r)n where r=Interest rate n=number of years
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A: Using excel FV function
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A: *Note : as per policy only first question is answered.
Q: suppose you are planning to buy a home in 8 years from now that costs you 55980 OMR, How much should…
A: The annuity term is a financial term that reflects a stream of equivalent periodic cash flows over a…
Q: Suppose you are 20 years old today and want to have OMR 500000 saved by the time you reach 30 years.…
A: Discounting is a way to find the PV of future amount by using appropriate rate or PVF. It shows the…
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A: The correct option is e. 18050
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A: Initial investment = $178,556.90 Interest rate = 0.08 Accumulated value = $500,000 Period = ?…
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A: Present value considers the time value of money concept. It considers the discounting factor at…
Q: suppose you are planning to buy a home in 8 years from now that costs you 47114 OMR, How much should…
A: Here, Future Value of home is OMR 47114 Time Period is 8 years Interest Rate is 6.012%
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- If you invest $12,000 today, how much will you have in (for further Instructions on future value in Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at l5% D. 19 years at 18%You would like to retire in 50 years, as a millionaire. If you have $20 000 today what rate of return do you need to earn to achieve your goal? Select one: a. 8.00% b. Cannot be calculated c. 8.14% d. 8.41%May I ask for an explanation and solution to the question for a better understanding. Thank you! 1. If you invest P8,000 at 6.6% interest, compounding monthly, how much will you have in 3½ years? a. P10,072.50 b. P10,010.64 c. P29,848.00 d. P8,155.09
- suppose you are planning to buy a home in 8 years from now that costs you 47114 OMR, How much should you save each year in your bank account that pays 6.012 percent to reach your goal? Select one: O a. 4758.17 Ob. 4321.71 Oc. 466508.69 Od. None of the options O e. 3651.77Assume that you will receive $2500 at the end of 6 years and want to know the present value (PV) of that future sum. Assuming a positive interest rate (required rate of return), which of the following is a possible number for the present value of the $2500? Even without knowing the interest rate, it is possible to answer this question. O A. $2742.53 B. $2632.45 O C. $1967.25 OD. $2572.50 O E. None of the above is a possible number.suppose you are planning to buy a home in 8 years from now that costs you 55980 OMR, How much should you save each year in your bank account that pays 6.012 percent to reach your goal? Select one: O a. 4338.96 O b. 554297.17 O c. None of the options O d. 5653.57 O e. 5134.98
- Suppose you wish to have $17,250 in 5 years. Use the present value formula to find how much you should invest now at 5% interest, compounded semiannually in order to have $17,250, 5 years from now. Then calculate the amount of interest. O $3,774.33 $4,312.50 $12,937.50 $13,475.67What will be the value of your saving in 4 years with an interest rate of 10% if you invest $120 today, $220 in two years and withdraw $60 in year 4? Select one: a.$441.88 b.$259.08 c.$381.89 d.$541.02Suppose you wish to have $18500 in 5 years. use the present value formula to find out how much you should invest now at 9% interest, compounded semiannually, in order to have $18,500, 5 years from now. Then calculate the interest. The possible answers are: a. 6587.34 b. 8325.00 c. 10175.00 d. 11912.66 I understand how to do the present value formula but after that I don't understand how to calculate the interest, please help!
- suppose you are planning to buy a home in 8 years from now that costs you 59933 OMR, How much should you save each year in your bank account that pays 6.012 percent to reach your goal? Select one: a. 4645.36 b. None of the options c. 593438.59 d. 5497.58 e. 6052.80Determine the future worth in year 9 for savings of $12000 now and $7000 two years from now. i= 10% per year. Select one: O a. 25600 O b. 23600 O c. 8610 O d. 36790 O e. 41970Your friend offers you an investment opportunity that would yield $100 per year for the next 3 years. Using a discount rate of 10%, decide whether this is a good investment opportunity. What is the present value of this investment? a. $200.05 b. $250 c. $248.68 d. 258.20