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5. You have two opportunities to invest $5,000 for 10 years. The first provides a yield of 8% annually, compounded quarterly. The second provides a
5. You have two opportunities to invest $5,000 for 10 years. The first provides a yield of 8% annually, compounded quarterly. The second provides a yield of 8.5% annually, compounded annually. Which of these investments provides the highest returns? By how much? 6. Which would you prefer -- $10,000 now, $20,000 10 years from now, or $30,000 20 years from now, assuming a. a 6% annual interest rate? b. an 8% annual interest rate? c. a 10% annual interest rate? 7. You have the opportunity to purchase a note that still has 4 years to run. It pays $750 per year, with the first payment due 1 year from now. It can be purchased for $2,700. Should you buy the note, assuming you can earn 6% on an alternative investment
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