Question
1.$100,000 is invested for five years at a quarterly compounded rate of 2.25%.What are the proceeds? 2.What is the present value of $10,500 in 2.5
1.$100,000 is invested for five years at a quarterly compounded rate of 2.25%.What are the proceeds?
2.What is the present value of $10,500 in 2.5 years at 3% monthly compounded discount rate?
3.What is the price of an asset which pays $5,000 in 1 year and $50,000 in 10 years, where the 1-year discount rate is 5.5% and the 10-year is 5%?
4.What are the proceeds of lending $1 million for a week at half a percent?
5.How much must you invest today in order to produce proceeds of $1,000,000 six months from today at a rate of 1.1%?
6.What is the implied three-year semi-annual compounded interest rate if the present value of $1,300 in three years is $1,000?
7.Consider a cash flow of $500,000 in 50 years, at an annual discount rate of 5.5%.What is the quarterly compounded equivalent rate?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
1 To calculate the proceeds of an investment we can use the formula for compound interest A P1 rnnt Where A the final amount proceeds P the principal amount initial investment r the annual interest ra...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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