Question
If you invest $1,765 at the end of each of the next five years at 2.2% p.a., how much will you have after 5 years?
If you invest $1,765 at the end of each of the next five years at 2.2% p.a., how much will you have after 5 years?
You are investigating a cash flow stream that looks as follows: the cash flow stream is a perpetuity that pays $1,334 per year. However, the first payment will occur six years after the perpetuity is purchased. The interest rate is 4%. What is the present value of this perpetuity on the date that it is purchased?
Calculate the effective annual interest rate corresponding to a rate of 7.00% p.a., compounded quarterly.
You are looking to invest $5,445 for a 8 year period in the stock market. What annual rate of return do you have to realise in order for your investment to grow to $9,880?
Your bank account pays an interest of 4.2%, compounding quarterly. If you deposit $4,669 today, how much will there be in the account after 7 years?
You are considering to deposit $1000 into a 4.7% savings account every year over the next 12 years. Alternatively, you can just deposit one larger sum of money in the account today, and no additional deposits in the coming years. How much would the have to put in the account today to reach the same sum of money after 12 years?
Shares of the WNZ corporation have just paid a yearly dividend of $1.05 per share. This meant that the company was able to maintain its steady dividend growth path of 6% per year, and investors expect that the dividends will continue to grow at this rate in the foreseeable future. They require a return of 10% per year from this stock. What do you expect the share price to be three years from now?
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Investment after 5 years Present value at the beginning of year 1 PV0 Future value of each annual investment FV1765 Number of periods n5 Interest rate ...Get Instant Access to Expert-Tailored Solutions
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