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i need these done in an hour i do not have time to extend please help 2. You have an investment opportunity in Japan. It

i need these done in an hour i do not have time to extend please help

image text in transcribed 2. You have an investment opportunity in Japan. It requires an investment of $1.06 million today and will produce a cash flow of111 million in one year with no risk. Suppose the risk-free interest rate in the United States is 4.4%, the risk-free interest rate in Japan is 2.8 %and the current competitive exchange rate is yen 110 per dollar. What is the NPV of this investment? Is it a good opportunity? 3. Calculate the future value of $1,000 in a. 55 years at an interest rate of 5% per year. b. 10years at an interest rate of 5% per year. c. 55 years at an interest rate of 10%per year. d. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)? 4. Suppose you invest $750 in an account paying 2% interest per year. a. What is the balance in the account after 3 years? How much of this balance corresponds to "interest on interest"? b. What is the balance in the account after 25 years? How much of this balance corresponds to "interest on interest"? 5. your daughter is currently 9 years old. You anticipate that she will be going to college in 9 years. You would like to have $158,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 11% per year, how much money do you need to put into the account today to ensure that you will have $158,000 in 9 years? 6. You are thinking of retiring. Your retirement plan will pay you either $300,000 immediately on retirement or $420,000 five years after the date of your retirement. Which alternative should you choose if the interest rate is: a. 0 %per year? b. 8 % per year? c. 20 %per year? 7. You have been offered a unique investment opportunity. If you invest $10,000 today, you will receive $500 one year from now$1,500 two years from now, and $10,000 ten years from now. a. What is the NPV of the investment opportunity if the interest rate is 6% per year? Should you take the opportunity? b. What is the NPV of the investment opportunity if the interest rate is 2% per year? Should you take the opportunity? 8. What is the present value of $8,000 paid at the end of each of the next 95 years if the interest rate is 5% per year? 9. You are 27 years old and decide to start saving for your retirement. You plan to save $4,500 at the end of each year (so the first deposit will be one year from now), and will make the last deposit when you retire at age 70. Suppose you earn 6% per year on your retirement savings. a. How much will you have saved for retirement? b. How much will you have saved if you wait until age 39 to start saving (again, with your first deposit at the end of the year)? 10. Your grandmother has been putting $5,000 into a savings account on every birthday since your first (that is, when you turned 1). The account pays an interest rate of 3%. How much money will be in the account on your 18th birthday immediately after your grandmother makes the deposit on that birthday? 11. You are thinking of purchasing a house. The house costs $250,000. You have $36,000 in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price. The bank is offering a 30-year mortgage that requires annual payments and has an interest rate of 5% per year. What will your annual payment be if you sign up for this mortgage? 12. Your grandmother bought an annuity from Rock Solid Life Insurance Company for $270,000 when she retired. In exchange for the $270,000, Rock Solid will pay her $50,000 per year until she dies. The interest rate is 4%. How long must she live after the day she retired to come out ahead (that is, to get more in value than what she paid in)

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