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Calculate five questions and show process 1: you have decided to invest $200 today at a quoted annual rate of 5%. How much will your
Calculate five questions and show process 1: you have decided to invest $200 today at a quoted annual rate of 5%. How much will your investment be worth at the end of Year 4 if the compounding period is monthly? 2: Tom manufactures a cap. Sales this year are $435000. The company excepts its sales to go up to $700000 in five years. What is the excepted growth rate in sales for this firm? 3: You are planning to buy a new caravan to make a trip around Australia. The cost of the van is $225000 and you can get a loan from the bank for that amount. If you can get a fifteen year loan at 8.75% per annum compounded fortnightly, how much do you need to pay every fortnight? 4: Suppose you are going to receive $2000 per year for five years. The appropriate interest rate is 6% per annum. What is the future value if the payment are an annuity due? 5: What is the value of a 9% bond that matures in 5 years, pays interest semi-annually, has a face value of $1000, when the current market yield is 5.5% per annum
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