You are contemplating investing some surplus funds and the following options are available: Invest $50,000 @ 4% p.a. compounded annually for 5 years. Invest $45,000 @ 3% p.a. compounded quarterly for 5 years. Invest $40,000 @4.5% p.a. compounded Semi-annually for 5 years. Invest $50,000 @ 3% p.a. compounded Semi-annually for 5 years. Which one of the above is the Second-best option? and why?
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You are contemplating investing some surplus funds and the following options are available:
- Invest $50,000 @ 4% p.a. compounded annually for 5 years.
- Invest $45,000 @ 3% p.a. compounded quarterly for 5 years.
- Invest $40,000 @4.5% p.a. compounded Semi-annually for 5 years.
- Invest $50,000 @ 3% p.a. compounded Semi-annually for 5 years.
Which one of the above is the Second-best option? and why?
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- You are contemplating investing some surplus funds and the following options are available: 1. Invest $50,000 @ 4% p.a. compounded annually for 5 years. 2. Invest $45,000 @ 3% p.a. compounded quarterly for 5 years. 3. Invest $40,000 4.5% p.a. compounded semi-annually for 5 years. 4. Invest $50,000 @ 3% p.a. compounded semi-annually for 5 years. 5. Invest $55,000 @ 0.5% p.a. compounded weekly for 5 years Which one of the above is the second-best option?You are contemplating investing some surplus funds and the following options are available: 1 . Invest $50,000. @ 4% p . a . compounded annually for 5 years. 2 . Invest $45,000. @ 3% p . a . compounded quarterly for 5 years. 3 . Invest $40,000. @ 4.5% p . a . compounded semi - annually for 5 years. 4 . Invest $50,000. @ 3% p . a . compounded semi - annually for 5 years. 5 . Invest $55,000. @ 0.5% p . a . compounded weekly for 5 years. Which one of the above is the second - best option?Suppose you want to make an investment of $5,000, and you have two funds to choose from: Fund A and Fund B. Fund A will give you a return of $5,250 after a year. Fund B will give you a return of $1,200 per year in 5 annual installments. Consider the annual interest rate to be 2%. Based on the present value of the two future inflows, which of the two funds should you choose to invest your money in?
- You are contemplating investing some surplus funds and the followingoptions are available: Show manual computation1. Invest $50,000 @ 4% p.a. compounded annually for 5 years.2. Invest $45,000 @ 3% p.a. compounded quarterly for 5 years.3. Invest $40,000 @ 4.5% p.a. compounded semi-annually for 5 years.4. Invest $50,000 @ 3% p.a. compounded semi-annually for 5 years.5. Invest $55,000 @ 0.5% p.a. compounded weekly for 5 yearsWhich one of the above is the second-best option?You are contemplating investing some surplus funds and the followingoptions are available:1. Invest $50,000 @ 4% p.a. compounded annually for 5 years.2. Invest $45,000 @ 3% p.a. compounded quarterly for 5 years.3. Invest $40,000 @ 4.5% p.a. compounded semi-annually for 5 years.4. Invest $50,000 @ 3% p.a. compounded semi-annually for 5 years.5. Invest $55,000 @ 0.5% p.a. compounded weekly for 5 yearsWhich one of the above is the second-best option?(IRR calculation) Your investment advisor has offered you an investment that will provide you with a single cash flow of $10,000 at the end of 20 years if you make an annual payment of $200 per year in the interim period. Specifically, the annual payments begin immediately and extend through the end of year 19. You then receive the $10,000 at the end of year 20. Find the internal rate of retum on this investment This investment's internal rate of retum is%. (Round to two decimal places) C
- Your investment advisor has offered you an investment that will provide you with a single cash flow of $ 10,000 at the end of 20 years if you pay premiums of $ 200 per year in the interim period. Speciifcally, the annual premiums will begin immediately and extend through the end of year 19. You will then receive the $ 10,000 at the end of year 20. Find the IRR for this investment a. 8.00% b. 7.10% c. 8.10% d. 9.10%An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300 at the end of Year 5, and $600 at the end of Year 6. A. If other investments of equal risk earn 4% annually, what is its present value? Round your answer to the nearest cent. B. If other investments of equal risk earn 4% annually, what is its future value? Round your answer to the nearest cent.If you invest $9,400 per period for the following number of periods, how much would you have received at the end? ( Use a Financial calculator to arrive at the answers. Round the final answers to the nearest whole dollar.) a. 12 years at 6 percent. Future value $ b. 18 years at 8 percent. Future value $ c. 25 periods at 16 percent. Future value $
- You are considering a 10 year investment plan in which your target is $150,000. There are two options available for you: Option 1: Putting exactly an equal amount of money into an investment fund at the end of each year for 10 years with the rate of return of 8%, annually compounding. Option 2: Putting your initial investment of $50,000 in an asset that will pay you 9% rate of return, compounding quarterly for the first 6 years. The rate of return, compounding annually for the last 4 years (the period from year 7 to the end of year 10) has not been defined yet. Required: Calculate the amount of money you should put into your investment fund each year in Option 1?You are considering a 10 year investment plan in which your target is $150,000. There are two options available for you: Option 1: Putting exactly an equal amount of money into an investment fund at the end of each year for 10 years with the rate of return of 8%, annually compounding. Option 2: Putting your initial investment of $50,000 in an asset that will pay you 9% rate of return, compounding quarterly for the first 6 years. The rate of return, compounding annually for the last 4 years (the period from year 7 to the end of year 10) has not been defined yet. Required: Compute the effective annual interest rate (EAR) in the first 6 years in Option 2? Compute the annually compounding rate of return you should target for your asset in the following 4 years to get $150, 000 at the end of year ten in Option 2?If you invest $8,300 per period for the following number of periods, how much would you have received at the end? (Use a Financial calculator to arrive at the answers. Round the final answers to the nearest whole dollar.)a. 12 years at 6 percent.Future value$b. 20 years at 9 percent.Future value$c. 20 periods at 14 percent.Future value$