Question
1) Given the following three options that the bank offers on a savings account, which would you prefer? A. 0.49 monthly rate, compounded monthly B.
1) Given the following three options that the bank offers on a savings account, which would you prefer? A. 0.49 monthly rate, compounded monthly B. 6% APR with no compounding C. 5.808% APR compounded monthly
2) 4 years ago, you deposited $1500 in a savings account which pays 6% APR with monthly compounding. What is your balance today? ________ Give the answer as a positive number. (Round to the nearest dollar)
3) A perpetuity will pay $350 per year beginning seven years from today. Given an interest rate of 5% EAR, what is the value of the perpetuity today? ________ Give the answer as a positive number. (Round to the nearest dollar)
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Financial Modeling
Authors: Simon Benninga, Tal Mofkadi
5th Edition
0262046423, 9780253337825
