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4 Mohamed is considering investing his money in a project. In order to become a partner in the project, he'll have to pay 100,000 after

4 Mohamed is considering investing his money in a project. In order to become a partner in the project, he'll have to pay 100,000 after 2 years from now. How much money should he have today in order to be able to invest in the project if the current interest rate is 7% compounded monthly?
5 A couple plans to set aside $20,000 per year in a conservative portfolio projected to earn 7 percent a year. If they make their first savings contribution today, how much will they have at the end of 20 years?
You are offered 2 financial instruments (A & B) with the following cash flows. Each of the financial instrument is sold at a market price today L.E 135,000 which financial instrument will you buy?
6
Market Price 135,000
Current Year 2023
Instrument A Year 2024 2025 2029 2031 2035 2040 2045 2047 2050 2051 2052
Cash Inflow 60,000 10,000 25,000 20,000 14,000 35,000 55,000 70,000 100,000 120,000 150,000
r 17%
Instrument B Year 2023 2024 2025 2026 2028 2029 2030 2032 2035 2040 2042 2044 2046
Cash Inflow 40,000 24,000 36,000 20,000 24,000 32,000 40,000 45,000 20,000 55,000 65,000 70,000 75,000
r 17%

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