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Please solve the document below with working. Thankyou. Business Finance Professor Saeid Hoseinzade Homework #1 1. Complete the table. Present Value Interest Rate Number of

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Please solve the document below with working. Thankyou.

image text in transcribed Business Finance Professor Saeid Hoseinzade Homework #1 1. Complete the table. Present Value Interest Rate Number of Periods Future Value $400.00 5.0% 5 ? ? 6.0% 30 $1,000,000.00 $150,000.00 ? 20 $2,000,000.00 $50,000.00 16% ? $1,000,000.00 2. 10 years ago you purchased some land for $100,000. The current price of your land is $250,000. At that time 10 years ago, you could also invest your money in the stock market. Over the past 10 years, the stock market on average returned 8% per year. Did you make a right investment decision by purchasing the land? 3. You want to have $1,000,000 savings when you retire at the age of 65. You planned to make a one-time deposit into your retirement account and let it grow until you retire. Assuming that your retirement account earns 5% interest per year, how much you have to deposit if: a. If you are 20 years old. b. If you are 25 years old. c. If you are 30 years old. 4. You have $10,000 and you decide to invest $2,500 in each of the following investments. a. Bank CD at 4%. b. Bond fund at 8%. c. Mutual stock fund at 12%. d. New venture stock at 24%. In total how much money you will have after 5 years? Page 1 of 2 5. You have a bank account that pays 4% interest per year. You planned to make the following deposits: $1,000 right now. $1,500 at the end of year 1. $1,200 at the end of year 2. $,2000 at the end of year 3. How much money will you have in your account at the end of year 4? (Draw the cash flow time line) How much money will you have in your account at the end of year 8? (Draw the cash flow time line) Page 2 of 2

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