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Investment Appraisal questions with 100% verified guaranteed answers graded a+. $12.99   Add to cart

Exam (elaborations)

Investment Appraisal questions with 100% verified guaranteed answers graded a+.

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  • Course
  • INV.
  • Institution
  • INV.

You want to get married in 5 years time and the overall cost (incl. a meal for all invitees) will be £10,000. Your auntie is willing to give you some units of a fund which gives a 3% annual return to the investors. What is the value of units you need to be able to cover the cost? - correct ans...

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  • August 22, 2024
  • 3
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • INV.
  • INV.
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RealGrades
Investment Appraisal questions

You want to get married in 5 years time and the overall cost

(incl. a meal for all invitees) will be £10,000. Your auntie is

willing to give you some units of a fund which gives a 3%

annual return to the investors. What is the value of units you

need to be able to cover the cost? - correct answer £8, 626.09



The nominal interest rate a bank applies on your saving

account is 5% per annum. What is the annual effective rate if

interests are paid monthly? and if paid quarterly? - correct answer 5.12% and
5.09%



What is the present value of an annual payment of £1,000 for the next ten years if your OCC is equal to:
(a) 10% (b) 8% - correct answer a) 6145 b) 6710



Show that a five year lease bought for £8,870.16 and

providing rental income of £2,400 p.a. gives an annual return of 11%. - correct answer
£8870



The nominal rate of your saving account is 8% p.a. paid

quarterly. What are the effective monthly, quarterly and

annual rates? (you need to give 3 answers). - correct answer 2% 8.24% 0.66%



You are offered two investments with similar risks: the first

one gives you an annual return of 11.0%; the second one a

half-yearly return of 5.4%. What is your choice? - correct answer Second as
gives 11.09%

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