Ushtrime Te Zgjidhura — Investime

Year 1: $100 Year 2: $120 Year 3: $150

You have a portfolio with two stocks:

If you invest $500 today, what will be the future value in 3 years, if the interest rate is 8% per annum? Ushtrime Te Zgjidhura Investime

Total Cash Flows = $100 + $120 + $150 = $370

What is the present value of an investment that will pay $1,000 in 5 years, if the discount rate is 10% per annum? Year 1: $100 Year 2: $120 Year 3:

Where: FV = future value PV = present value = $500 r = interest rate = 8% = 0.08 n = number of years = 3

FV = $500 x (1 + 0.08)^3 = $500 x 1.25971 = $629.86 000 in 5 years

If the initial investment is $300, what is the return on investment (ROI)?