Answered step by step
Verified Expert Solution
Question
1 Approved Answer
11. You plan to invest an amount of money in a certificate of 2 points deposit (CD) at your bank. The stated interest rate applied
11. You plan to invest an amount of money in a certificate of 2 points deposit (CD) at your bank. The stated interest rate applied to the CD is 12%, compounded monthly. How much must you invest if you want the balance in the CD account to be P8,500 in 22 years? * O P143,302.66 O P11,941.89 O P11,302.14 O P6,306,34 12. Justine is thinking about purchasing an investment from 2 points RCBC Capital. If she buys the investment, Justine will receive P1,000 every three months for two years. The first P1,000 payment will be made as soon as she purchases the investment. If Justine's required rate of return is 16%, how much should she be willing to pay for this investment? O P10,764.80 O P7,002.05 O P1,345.60 O P1,368.57 13. If you need P350,000 for a down payment on a house in 2 points 3 years, how much money must you invest today at 8% interest, compounded quarterly, to achieve your goal?* O P44,388.46 O P277,841.28 O P128,694.27 O P275,972,61 14. Your firm rents office space for P250,000 per year, due 2 points at the BEGINNING of each year. If your firm's hurdle rate is 10%, what is the present value of five years' worth of rent? * O P1,042,466.36 O P402,627.50 OP155,230.33 O P170,753.36 2 points 15. You expect to receive P1,000 at the END of each of the next 3 years. You will deposit these payments into an account which pays 10 percent, compounded semiannually. What is the future value of these payments, that is, the value at the end of the third year?* O P1,340.10 P1.157.63 OP3,318.01 OP1,331.00
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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