Question
1.) If you invest $10,000 today, how much would you have in 30 years if it is invested at 5% compounded annually? Round your answer
1.) If you invest $10,000 today, how much would you have in 30 years if it is invested at 5% compounded annually? Round your answer to an integer.
2.) An investment opportunity offers to pay $5000 in 3 years. If you can invest your money else where and earn an annual rate of 7% for taking on similar risk, what is the maximum that you are willing to pay today for this investment opportunity? Assume annual compounding. Round your answer to an integer.
3.) An investment opportunity offers to pay $10,000 in 5 years with an initial investment of $5000. What is the implied interest rate? Assume annual compounding. Use Excels rate function to find the answer. Show your answer in % and round to two decimals (e.g. xx.xx%).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started