Question: Your friend asks you to invest 10 000 in a business
Your friend asks you to invest $10,000 in a business venture. Based on your estimates, you would receive nothing for 4 years, at the end of year 5 you would receive $4,690, and at the end of year 6 you would receive $14,500. If your estimates are correct, what would be the yield on this investment?
Answer to relevant QuestionsUse a financial calculator or an Excel spreadsheet to estimate the yield each of the following investments. For each of the following streams of dividends, estimate the compound annual rate of growth between the earliest year for which a value is given and 2014. Refer to the table in Problem. What is the total return in dollars and as a percentage of your original investment if you purchased 100 shares of the investment at the beginning of 2010 and sold it at the end of 2012? In ...When interest is compounded more frequently than annually, what happens to the true rate of interest? Under what condition would the stated and true rates of interest be equal? What is continuous compounding? For each of the investments below, calculate the present value of the annual end-of-year returns at the specified discount rate over the given period.
Post your question