These exercises demonstrate the application of various investment concepts and techniques, including present value, future value, return on investment, and portfolio management. By understanding these concepts, investors can make informed decisions and achieve their financial goals.
FV = $500 x (1 + 0.08)^3 = $500 x 1.25971 = $629.86 Ushtrime Te Zgjidhura Investime
Year 1: $100 Year 2: $120 Year 3: $150
Where: FV = future value PV = present value = $500 r = interest rate = 8% = 0.08 n = number of years = 3 including present value
You have a portfolio with two stocks:
Using the present value formula:
PV = $1,000 / (1 + 0.10)^5 = $1,000 / 1.61051 = $620.92 return on investment