According to the Rule of 72, what must the return on an investment be to double an initial investment of $1,000 in 7 years? Multiple Choice 10.41% 2% 8.63% 10.29% 7.2% Show all steps of calculation and formulas if necessary
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According to the Rule of 72, what must the return on an investment be to double an initial investment of $1,000 in 7 years?
Show all steps of calculation and formulas if necessary
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- answer if its true or false 1) Based on the following information calculate the value at time 1 of the investment made at time zero. This future value is between 103 and 105. time discount investment (years) rate 6% 100 1answer if its true or false Based on the following information calculate the value at time 2 of the investment made at time zero. This future value is equal to 108. time discount investment (years) rate 8% 100 1 2Calculate the APR of the following investment, entered as a percentage (Example: if your answer is 14.5%, enter 14.5 and not 0.145) Year Number Cashflow 0 -11000 1 3000 2 3500 3 2900 4 2800
- j. Find the PV and the FV of an investment that makes the following end-of-year payments. The interest rate is 8%. Year 1 $100, Year 2 $200, Year 3 $400 Year Payment 1 100 2 200 3 400 Rate 8% To find the PV, use the NPV function: Pv= $581.59 Year Payment x (1+ I)^(N- t) = FV 1 100 2 200 3 400Find the PV and FV of an investment that makes the following end-of-year payments. The interest rate is 8%. Year Payment 1 100 2 200 3 400 Rate = 8% To find the PV, use the NPV function: PV = Year Payment x (1 + I )^(N-t) = FV1 100 1.17 116.64 2 200 1.08 216.00 3 400 1.00 400.00 Sum = ?PV = ?FV of PV = ?P 9-1 Investment Scenarios (LO 9-3) Arkansas Best Freightways is considering a purchase of three different potential trucks. it is considering three different investment scenarios and their respective cash flows. Arkansas Best Freightways use a cost of capital of 9 percent to evaluate the investments. Year Year 0 (today) Year 1 Year 2 Year 3 Year 4 Buy new truck Increased profits Increased profits Increased profits Increased profits Net cash flows over life (not discounted) Investment 1 (85,000) 25,000 25,000 25,000 25,000 $ Investment 2 (105,000) 20,000 30,000 40,000 50,000 Required: 1. Calculate the net cash flows (not discounted) over the life of the three investments (years 0 to 4). (Negative amounts should be entered using a minus sign.) Answer is complete and correct. Investment 1 15,000 Investment 2 $ Investment 3 (125,000) 40,000 30,000 20,000 10,000 Investment 3 (25,000) 35,000 S Cost of Capital 9%
- Select the correct answer (explain) In how long does a capital invested at 5% simple annual interest grow 24%? a.4.8 b.5.2 c.6 d.4.6uestion 1: Solve the following TVM problems using Excel formulas. You MUST use Excel formulas (FV or PV) to receive credit. ou can assume that all payments are made at the beginning of the period and use "1" for the "type" argument in the formula. A. Suppose you invest 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded annually? B. Suppose you invest $ 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded quarterly? C. Suppose you invest $ 570 monthly. What is the future value of the investment in 29 29 years, if interest at + 5% is compounded monthly? 5 6 7 8 19 20 21 22 23 24 25 26 27 28 29 Question 1 Question 2 + Ready Accessibility: Investigate MAR 17 A 国 W XReturns. What are the returns on the following investments, E ? ..... Original Cost of Investment Selling Price of Investment Distributions Investment Received Percent Return CD $800 $810 $0 % (Round to two decimal places.)
- Problem 2: The amount of an investment is represented by f(t) = 4186.58(1.025)*. Algebraically, determine when (in compounding periods t) the investment will reach $1,000,000.Computing Present Value of Single Amount Under Different Assumptions Compute the present value under each of the four separate investment options. Round interest rate percentages to two decimal places in your calculations (for example, enter .0063 for .6333333%). Round final answer to the nearest whole dollar (for example, enter final answer 2,556 for 2,555.5678). Do not use a negative sign with your answers. Investment FutureAmount Compounding AnnualInterestRate Investment Period (Years) PresentValue Investment A $22,000 Annually 5% 10 Answer Investment B 110,000 Semiannually 6% 5 Answer Investment C 132,000 Quarterly 8% 6 Answer Investment D 156,000 Monthly 10% 5 AnswerFind the profitability index for Oman Air conditioner Company if the initial investment is 4000 OMR and the cash Inflows are as follows: Year 1 =1350 OMR; Year 2 =1400 OMR; Year 3=1450 OMR and Year 4=1500 OMR. Use discount rate as 5%. Select one: a. None b. 1.69 c. 1.83 d. 1.26 e. 1.48