At 2% interest per year, what was the initial endowment amount (PW) that would permit $1 million dollars in interest to be generated each year, forever?
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At 2% interest per year, what was the initial endowment amount (PW) that would permit $1 million
dollars in interest to be generated each year, forever?
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- How much must be invested now to receive $50,000 for 8 years if the first $50,000 is received in one year and the rate is 10%?At what annual interest rate, compounded annually, would $500 have to be invested for it to grow to $1,942.45 in 11 years? At what annual interest rate, compounded annually, would $500have to be invested for it to grow to $1,942.45 in 11 years?What is the present worth of the project, whichrequires $130,000 investment now and receives$40,000 every year for six years at an interest rateof 14%?
- If the cost of capital is 12%, what is the present value of a perpetuity that pays $11,000 at the end of each year with the first payment being made 1 year from today?What is the capitalized cost of $60,000 in year 0, $150,000 in year 2 and a uniform annual amount of $50,000 per year forever, beginning in year 5? Use an interest rate of 10% per year?What about will be accumulated on this account in 50 years if initial investment is 500,000. 9% interest annually
- If Quail Company invests $46,000 today, it can expect to receive $12,000 at the end of each year for the next seven years, plus an extra $6,400 at the end of the seventh year. (PV of $1, FV of $1, PVA of $1, and FVA of $1. What is the net present value of this investment assuming 12% return on investments? Need the Present Value of of an Annuity Present Value of 1, Present Value of Cash Inflows, Immediate Cash Outflows and The Net Present Value. n= 7 and i= 12%What single investment made today, earning 10 % annual interest, will be worth $10,000 at the end of 3 years ? What is the present value of $10,000 to be received at the end of 3 years if the discount rate is 20% ?If you invest $9,000 today, how much will you have: a. In 2 years at 9 percent? b. In 7 years at 12 percent? c. In 25 years at 14 percent? d. In 25 years at 14 percent (compounded semiannually)?
- Assume that you are valuing an infinitely lived asset that pays $350 at the end of each year. What is the present value of the asset if the opportunity cost of funds is 5%?How long must one wait (to the nearest year) for an initial investment of $1,000 to triple in value if the investment earns 8% compounded annually? Round to the nearest year and show your workWhat present value amounts to $15,000 if it is invested for 20 years at 8% compounded annually? (Round your answer to the nearest cent.)