Question
a. Lia wants to save for a down payment on a home. She invests $8,000 at 4% annual interest, leaving the money invested without withdrawing
a. Lia wants to save for a down payment on a home. She invests $8,000 at 4% annual interest, leaving the money invested without withdrawing any of the interest for 10 years. How much will Lia have accumulated for the down payment at the end of 10 years?
b. What is the future value of 10 periodic payments of $10,000 each made at the beginning of each period and compounded at 5%?
c. David wishes to accumulate $2 million. He has a balance of $184,592 and has a guaranteed interest rate of 10%. How many years must David leave that balance in the fund in order to get his desired $2,000,000?
d. Mark, Inc. issued $5,000,000 of 10% corporate bonds on March 1, 2014. The bonds are due March 1, 2029 with interest payable each March 1 and September 1. At the time of issuance, the market interest rate for similar financial instruments is 12%. What is the market value of the bonds?
please show work.
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