1. Three cash flows of $3,125, $3,450, and $3,800 will be given to Ms. Marwa as a result of her investment. What will the future value of her investment cash flows be at the end of three years if she can earn 7.5 percent on any investment that she makes? (Show your calculations) (2 Marks)

2. For computations of present or future values, the annual percentage rate (APR) is not the proper rate. Justify this assertion. (2 Marks) maximum 5 lines

3.Faisal invested 40% of his portfolio into an investment with an anticipated return of 12% and 60% of his portfolio into an investment with an expected return of 20%. What is the expected return on Faisal’s portfolio? (2 Marks) (Show your calculations)

Answer rating: 100% (QA)

Question 1 To calculate the future value of Ms Marwas investment cash flows we can use the following formula FV PV 1 rn where FV is the future value P... View the full answer