What annual rate of return is earned on a $5,000 investment when it grows to $9,500 in five years?

Looking for some serious help in Financial Management assignment.  I needed honest and willing to meet my dead line.  Instruction as following questions using grammatically correct language and appropriate APA citations. All questions need to be answer and with APA citations. All material MUST come from the book only. (The book that used is Finance by Cornett, Adair, & Nofsinger, 2016).  Chapter 4 Time Value of Money 1:  Analyzing Single Case Flows Page 78-99, and Chapter 5 Time Value of Money 2:  Analyzing Annuity Flows, pages 100-127. There are some hints and suggestions for certain questions in this assignment.

Answer the following questions and complete the following problems, as applicable. Unless otherwise directed, assume annual compounding periods in computational problems. You may solve the following problems algebraically, or you may use a financial calculator or Excel spreadsheet. If you choose to solve the problems algebraically, be sure to show your computations. If you use a financial calculator, show your input values. If you use an Excel spreadsheet, show your input values and formulas.

Note: In addition to your solution to each computational problem, you must show the supporting work leading to your solution to receive credit for your answer.

Question 1:

Proficient-level: "List and describe the purpose of each part of a time line with an initial cash inflow and a future cash outflow. Which cash flows should be negative and which positive?" (Cornett, Adair, and Nofsinger, 2016, p. 95).

Distinguished-level: State the reason for showing both a negative and positive amount on the time line.

Question 2:

Proficient-level: "How are the present value and future value related?" (Cornett, Adair, & Nofsinger, 2016, p. 95).

Distinguished-level: Explain why a dollar is worth more today than a dollar received a year from now.

Question 3:

Proficient-level: "How are present values affected by changes in interest rates?" (Cornett, Adair, & Nofsinger, 2016, p. 95).

Distinguished-level: Explain how future values are affected by changes in interest rates.

Question 4: HINT - In this problem you are asked to calculate future values using three different interest rates. When asked to recalculate the problem using a 6% interest rate, here are some check point figures: Present value = 150; Interest rate = 6%; period of time = 11; and solving for  Future Value (FV) you should obtain the correct answer of 284.74. (REMINDER: YOU ARE ALSO REQUIRED TO SHOW AND IDENTIFY THE KNOWN VARIABLES IN ORDER TO OBTAIN THIS CORRECT (FV); i.e.,  identify the amount of Present Value (PV), Interest Rate (I), and the Number of periods (N) used in order to solve for FV = 284.74 in this, and in all, quantitative problems.) So, how you would show your response to this part of question 4 (regardless of whether you used an algebraic formula, a financial calculator, or an Excel worksheet) would be as follows: "Answer is FV = 284.74; using PV =150; I = 6%; and N = 11.

Proficient-level: "How much would be in your savings account in 11 years after depositing $150 today, if the bank pays 7 percent per year?" (Cornett, Adair, & Nofsinger, 2016).

Recalculate the savings account balance, using a 6 percent interest rate, and again, using an 8 percent interest rate.

Distinguished-level: Describe the relationship between changes in interest rates and the ensuing changes in future values.

Question 5: HINT-The correct response for this problem falls between the range of $419.50 and $429.99. REMINDER, YOU ARE REQUIRED TO SHOW AND IDENTIFY THE KNOWN VARIABLES IN ORDER TO OBTAIN THE THIRD YEAR FUTURE VALUE AMOUNT.

Proficient-level: "A deposit of $350 earns the following interest rates: (a) 8 percent in the first year, (b) 6 percent in the second year, and (c) 5.5 percent in the third year. What would be the third year future value?" (Cornett, Adair, & Nofsinger, 2016).

Distinguished-level: Explain why the future value is not calculated as the average of the annual interest rates.

Question 6:  HINTIn this problem you are asked to calculate present values using three different interest rates. When asked to recalculate the problem using an 11% discount (interest) rate, here are some check point figures: Future value = 850; Interest rate = 11%; period of time = 10; and solving for Present Value (PV) you should obtain the correct answer of 299.36. (REMINDER: YOU ARE ALSO REQUIRED TO SHOW AND IDENTIFY THE KNOWN VARIABLES IN ORDER TO OBTAIN THIS CORRECT PRESENT VALUE (PV) IN THIS, AND IN ALL, QUANTITATIVE PROBLEMS.) So, how you would show your response to this part of question 6 (regardless of whether you used an algebraic formula, a financial calculator, or an Excel worksheet) would be as follows: "Answer is: PV = 299.36; using FV =850; I = 11%; and N = 10."

Proficient-level: "Compute the present value of a $850 payment made in 10 years when the discount rate is 12 percent" (Cornett, Adair, & Nofsinger, 2016, p. 96).

Recalculate the present value, using an 11-percent discount rate, and again, using a 13-percent discount rate.

Distinguished-level: Describe the relationship between changes in interest rates and the ensuing changes in present values.

Question 7: HINT -In this problem you are asked to calculate the annual rate of return (I) using three different periods of time. When asked to recalculate the problem using a 4 year period of time, here are some check point figures: Present value = (-)5,000; Future value = 9,500; period of time = 4; and solving for the annual rate of return (I) you should obtain the correct answer of 17.41%. MAKE SURE YOUR SHOW YOUR ANNUAL RATE OF RETURN TO FOUR DECIMAL PLACES as is shown in the 17.41% response. (Reminder: you are also required to identify the known variables in order to obtain this Interest rate (I) in this and in all quantitative problems.) So, how you would show your response to this part of question 7 (regardless of whether you used an algebraic formula, a financial calculator, or an Excel worksheet) would be as follows: "Answer is I = 17.41%; using PV = (-)5,000; FV =9,500; and N = 4."

Proficient-level: "What annual rate of return is earned on a $5,000 investment when it grows to $9,500 in five years?" (Cornett, Adair, & Nofsinger, 2016, p. 97).

Recalculate the rate of return, assuming the growth occurred in four years, and again, assuming the growth occurred in six years.

Distinguished-level: Describe the relationship between changes in the amount of time and the changes in annual rate of return.

Question 8:

Proficient-level: Would you rather have a savings account that paid interest compounded on a monthly basis, or one that compounded interest on an annual basis? Why?

Distinguished-level: State why a borrower would prefer more, or less, frequent compounding periods.

Question 9:

Proficient-level: What is an amortization schedule, and what are some of its uses?

Distinguished-level: Explain why more interest is incurred at the beginning of the amortization period than at the end of the amortization period.

Question10:

Proficient-level: "The interest on your home mortgage is tax deductible. Why are the early years of the mortgage more helpful in reducing taxes than in the later years?" (Cornett, Adair, & Nofsinger, 2016, p. 123).

Distinguished-level: Explain why the tax benefit of interest is even larger for longer-term loans?

Question 11: HINT In this problem you are asked to calculate future values of an annuity payment using three different interest rates. When asked to recalculate the problem using an 8% interest rate, here are some check point figures: Payment  = 900; Interest rate = 8%; period of time = 5; and solving for Future Value (FV) you should obtain the correct answer of 5,279.94. (REMINDER: YOU ARE ALSO REQUIRED TO SHOW AND IDENTIFY THE KNOWN VARIABLES IN ORDER TO OBTAIN THIS CORRECT (FV); i.e.,  show and identify the Payment (PMT), Interest Rate (I), and the Number of periods (N) used in order to solve for FV = 5,279.94 in this, and in all, quantitative problems.) So, how you would show your response to this part of question 5 (regardless of whether you used an algebraic formula, a financial calculator, or an Excel worksheet) would be as follows: "Answer is FV = 5,279.94; using Payment =900; I = 8%; and N =5."

Proficient-level: What is the difference between an ordinary annuity and an annuity due?

Distinguished-level: Explain why the future value of an annuity due is greater than the future value of an ordinary annuity.

Question 12: HINT-In this problem you are asked to calculate present value of an annuity payment using three different interest rates. When asked to recalculate the problem using a 9% discount (interest) rate, here are some check point figures: Payment = 700; Interest rate = 9%; period of time = 6; and solving for Present Value (PV) you should obtain the correct answer of 3,140.14. (REMINDER: YOU ARE ALSO REQUIRED TO IDENTIFY THE KNOWN VARIABLES IN ORDER TO OBTAIN THIS CORRECT PRESENT VALUE (PV) IN THIS, AND IN ALL, QUANTITATIVE PROBLEMS.) So, how you would show your response to this part of question 6 (regardless of whether you used an algebraic formula, a financial calculator, or an Excel worksheet) would be as follows: "Answer is PV = 3,140.14; using Payment =700; I = 9%; and N =6."

Proficient-level: "What is the future value of a $900 annuity payment over five years if interest rates are 9 percent?" (Cornett, Adair, & Nofsinger, 2016).

Recalculate the future value at 8 percent interest, and again, at 10 percent interest.

Distinguished-level: Describe the relationship between changes in interest rates and the ensuing changes in future values.

Question 13:

Proficient-level: "What is the present value of a $700 annuity payment over six years if interest rates are 10 percent?" (Cornett, Adair, & Nofsinger, 2016, p. 123).

Recalculate the present value at 9 percent interest, and again, at 11 percent interest

• Question14: Chapter 4 in the M: Finance textbook by Cornett, Adair, and Nofsinger provides an introduction to the main concepts of the time value of money for a single cash flow amount. These concepts are important in finance, because cash flows analyzed in most of finance occur at various periods of time, and adjustments to the cash flow's value need to be recognized. Review Chapter 4, with particular emphasis on the "Organizing Cash Flows" and "Future Values" sections of this chapter.

  Answer the following questions:

  Would you prefer to have $100 today or $100 one year from now? Why?

  How can compounding build wealth over time?

  How can compounding increase debt over time?

  Based on your responses to Questions 2 and 3, how can compounding both build wealth and increase debt? Is compounding a power or a curse

  All questions/problems from the assignments can be responded to directly from the assignment page. Be advised on some questions/problems there are references citing our "M: Finance” text by Cornett, Adair and Nofsinger text when an assignment uses a question/problem that has been used from the text. However, since some of the questions/problems have been modified, you do NOT need (and should not) go to the text to review the question/problem. Simply respond to all questions/problems directly from the listing on the assignment page.