What is the investment expected return if the following anticipated returns

are expected?

Space Software is considering an investment in new software that detects

malware threats in the financial industry. Two possible types of expansion are

under review. After investigating the possible outcomes, the company made the

estimates shown in the following table. The pessimistic and optimistic outcomes

occur with a probability of 20% and 25%, respectively, and the most likely

outcome occurs with a probability of 55%.

You are required to calculate the coefficient of variation for these two

projects.

The manager of Carson Inc. predicts that the economy will be either

strong, normal, or weak during the course of the upcoming year, and that the

company's returns will follow the probability distribution displayed below.

What is the standard deviation of the estimated returns?

Talitha is taking out a loan today at an annual compound interest rate of 9%. She will repay the principal, plus all the interest, in one lump sum of R18 300 three years from today. How much is she borrowing?

Gecko Dynamics deposited R16 500 in an investment account a year

ago with the intention of buying new machinery three years from now. Today, it

is adding another R12 000 to this account. The company plans on making a final

deposit of R20 000 to the account one year from today. How much will be

available when it is ready to buy the equipment, assuming the account pays 5,5%

interest?

Bartholomew took out a R5 800 credit card loan today to buy some furniture. The interest rate is 14%, compounded monthly. How long will it take him to pay off this debt if he makes regular payments of R150 per month only, and doesn’t add any additional charges?

Phoebe’s insurance agent is trying to sell her a retirement annuity that

costs R200 000 today. By buying this annuity, her agent promises that she will

receive payments of R1 225 a month for the next 30 years. What is the rate of

return on this investment?

Tiger Importing created a trust fund to give R90 000 in scholarships to

meritorious candidates each year. The trust fund earns a fixed 6% rate of

return. How much money did the firm contribute to the fund, assuming that only

the interest income is distributed?

Magdalene finally decided on a three-year consulting agreement that will pay her R40 000, R65 000, and R100 000 at the end of each of the next three years respectively. What is the present value of these cash flows given a 12% discount rate? 

A piece of real estate was bought by The Kristen Collective for

R4 800 000. They paid a down payment of 25% in cash and financed the

balance. The loan terms require monthly payments for 25 years at an annual

percentage rate of 8,65% compounded monthly. What is the amount of each

mortgage payment?