Question
1)How much you accumulate at the end of the year six if you invest at the end of each month $100 (monthly payment!), and account
1)How much you accumulate at the end of the year six if you invest at the end of each month $100 (monthly payment!), and account pays you 10% APR with semi annual compounding? 2)Consider a project that requires an initial investment of $200,000 and will produce a annual cash flow of $100,000 at the end of each year for five years. What is the NPV of this project if the five-year interest rate is 10% (EAR)? 3)Capital One is advertising a 120-month, 12% APR motorcycle loan. If you need to borrow $10 000 to purchase your dream Harley Davidson, what will your monthly payment be?
4)Consider a project that requires an initial investment of $100,000 and will produce a single cash flow of $100,000 in five years. What is the NPV of this project if the five-year interest rate is 10% (EAR)?
5)How much you will get if you invest 1000 at the beginning of the first year, and account pays you 3% per 6 months and your investment horizon is 6 years?)?
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