Question: 2. Solve the Following problems (4 points): 1. Investor needs 250.000 to pay for her house in 3 years time. How much will she need
2. Solve the Following problems (4 points):
1. Investor needs 250.000 to pay for her house in 3 years time. How much will she need to invest now in order to obtain that amount in three years if the 3 years if interest rate is 15%? The investor will put her money into a risk-free instrument (Treasury Bond) that pay no interest until the end. (0,5Points)
2. Suppose we invest 100.000 in a four-year deposit. At the end of the four years, we will receive 145.000. Whats the return on this investment? (0,5Points)
3. Today an investor puts 1.000.000 Euros into a bank at 8% interest for 3 years and 7months. Calculate the Future Value (0,5Points)
4. We have a Project A with an initial investment of 28.000.000, with the following information:
calculate the Internal Rate of Return. (0,75 Points)
If the shareholders, ask for that project a return of 15% do you as a finance director will invest in this project? (0,75 Points)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
