Answered step by step
Verified Expert Solution
Question
1 Approved Answer
answer all 4 questions with full work thank you! 1. Your financial advisor comes to you with an investment opportunity that will pay you $10,000
answer all 4 questions with full work thank you!
1. Your financial advisor comes to you with an investment opportunity that will pay you $10,000 in 7 years, $25,000 in 10 years, and $50,000 in 30 years. She says that you will need to invest $20,000 today. Your required interest rate is 8%. Is this a good investment? 2. The nominal rate quoted in the market is 8% per annum, and interest is paid every month. What is the effective annual rate (EAR)? 3. You deposit $3,500 today into an account guaranteed to pay 5.7% APR, compounded monthly. If you make no other deposits or withdrawals for the next five years, how much will you have in the account five years from today? 4. You purchase a residential building lot in Queens for $390,650, put $70,000 down, and finance the balance for 15 years at 12% APR, compounded quarterly. What is your quarterly mortgage payment Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started