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- Search Ao|=、=、新、m品1 AaBbCcDd AaBbCcDd AaBbC AaBbCcC AaB AaBbCcD 1 Normal 1 No Spac.. Heading 1 Heading 2 Title Subtitle 可^ 三 Paragraph Styles Determine when, to the nearest year, $3,000 invested at 5% per year, compounded daily, will be worth $10,000. Obtain an exponential function in the form f(t) = Ae. f(t) is the value after t years of a $8,000 investment earning 4.9% interest compounded continuously. f(t) = D Fo 1O 99+8:41 ← Activity 3 BF.pdf ACTIVITY NO.3 Purpose: Determine the time value of money. Procedure: Use the information to answer the questions that follow. Use the following equations: FV = PV(1 + i)N or PV = FV x (1 + i)-N 1. 1. Assume you have just been hired with an annual salary of P300,000. If you expect annual raises of 5%, what will your salary be for the following? a. 5 years? b. 10 years? = llll 50% c. 15 years? d. 30 years? 2. A farmland is currently selling for P200,000 per hectare. If the rate of increase has been 2% annually, what ago? was the price of the land 10 years ||| O :Q7 What annual rate of return is earned on a $5,000 investment when it grows to $10,250 in five years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) ANNUAL RATE OF RETURN?
- You have an opportunity to invest $104,000 now in return for $79,800 in one year and $29,600 in two years. If your cost of capital is 9.2%, what is the NPV of this investment? Question content area bottom Part 1 The NPV will be $XX enter your response here . (Round to the nearest cent.)Q12. If your investment is growing at 20%, how would you calculate how long it would take to double in size? Group of answer choices 1. =log(2)/log(1.2) 2. =log(1.2)/log(2) 3. =log(2)/log(0.2) 4. =log(0.2)/log(2)V F11 Harley- { [ C F13
- 1. Calculate the Annual rate of return. Solving for Rates - Excel FILE INSERT PAGE LAYOUT FORMULAS DATA REVEW VIEW Calibri 国 Paste BIU - -A-Alignment Number Conditional Format as Cell Cells Formatting Table Styles Clipboard Font. Styles A1 E. What annual rate of return is earned on a $5,000 investment when it grows to $10,750 in six years? (Do not round intermediate calculations and round your final answer to 2 decimal places Present value 5,000 Future value Number of periods Complete the following analysis. Do not hard code values in vour calculations. Annual rate of return s of 10 Next > here to search TPLQ5: Solve the following two independent scenarios: A. How much must be invested now to receive $30,000 for 10 years if the first $30,000 is received one year from now and the rate is 8%? Future Value PV FV Tables Factor Present Value PLEASE NOTE: All FV Factors will be rounded to three decimal places (i.e. 1.234). All dollar amounts will be with "$" and commas as needed and rounded to whole dollars (i.e. $12,345). Use the appropriate EXCEL spreadsheet in the Chapter11 TVOM Examples.xlsx downloadto prove your answer above: Using the appropriate EXCEL spreadsheet, the answer = PLEASE NOTE: The dollar amount will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). B. Project A costs $5,000 and will generate annual after-tax net cash inflows of $1,800 for five years. What is the NPV using 8% as the discount rate? Future Value PV FV Tables Factor Net Present Value PLEASE NOTE: All FV Factors will be rounded to three…Investment If $5000 is invested for 6 years atinterest rate r (as a decimal), compounded annually, the future value of the investment is given byS = 5000(1 + r) 6dollars.a. Find the future value of this investment for selectedinterest rates by completing the following table. b. Graph this function for 0 <= r <= 0.20.c. Compute the future value if the rate is 10% and20%. How much more money is earned at 20%?
- Try Yourself - Question 2 What annual rate is required for an investment to grow by 33% in 5 years if interest compounds 82 times per year? A. 6.12% B. 6.04% C. 5.92% D. 5.87% E. 5.71% First use i = FV PV 1/n - - 1. Then use i annual rate = C6. a) What capital should be invested now at 12.69% annually, compounded every two months to have $40,000 in 10 months? b) How much is the interest?Q2: A $15,000 investment is to be made with anticipated annual returns as shown in the spreadsheet in the below Figure. If the investor's time value of money is 10% per year, what should be entered in cells B11, B12, and B13 to obtain present, annual, and future equivalent values for the investment? Also draw the cash flow of this problem. 1 2 3 36457 9 10 11 12 13 A EDY 0 1 lekm 2 3 4 SOTSPAL 5 6 7 F B Cash flow -$15,000 $2,000 $2,500 $3,000 $3,500 $4,000 $4,000 $4,000 $4,000
