Question
1. You are told that if you invest $10,300 per year for 11 years (all payments made at the end of each year) you will
1. You are told that if you invest $10,300 per year for 11 years (all payments made at the end of each year) you will have accumulated $512,000 at the end of the period. What annual rate of return is the investment offering?
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34.39%
|
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23.94%
|
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20.90%
|
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30.84%
|
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27.76%
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2. You are offered an investment with a quoted annual interest rate of 11% with semi-annual compounding of interest. What is your effective annual interest rate?
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11.68%
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11.18%
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10.71%
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11.30%
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11.00%
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2. You are valuing an investment that will pay you $13,000 the first year, $15,000 the second year, $18,000 the third year, $20,000 the fourth year, $24,000 the fifth year, and $30,000 the sixth year (all payments are at the end of each year). What is the value of the investment to you now if the appropriate annual discount rate is 10.00%?
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$120,000.00
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$64,748.62
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$83,235.14
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$104,080.82
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$133,584.00
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