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Consider the following investment alternatives: Investment Rate Compounding A 9.69% Annually B 9.53% Semi-annually 9.36% Quarterly D 9.22% Monthly Which alternative will you choose? Select

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Consider the following investment alternatives: Investment Rate Compounding A 9.69% Annually B 9.53% Semi-annually 9.36% Quarterly D 9.22% Monthly Which alternative will you choose? Select one: a. Investment C O b. Investment D O c. Investment B O d. Investment A You are offered an investment opportunity which requires you to put $300 at the end of each month for the next 5 years, and then, starting with the following month, will receive $400 per month forever. If the annual interest rate is 12.48% monthly compounding, the net present value (NPV) of this investment is closest to: Select one: a. -$12,530 b. $12,530 0 C. $7,330 d. $7,330 You are considering to borrow $25,000 from a bank for 36 months with equal monthly installments. The bank offers the credit with 1% monthly interest rate. If you accept this credit deal, your outstanding loan at the end of the second month will be closest to: Select one: a. $24,420 b. $24,750 c. $23,340 d. $23,830 You are offered an investment opportunity which requires you to put $10,000 today and receieve $11,500 two years later. Then, the annual rate of return that is implicitly being promised is closest to: Select one: a a. 7.50% 0 b. 7.25% c. 7% O d. 7.75% If you want to accumulate $100,000 in real terms by the end of 10 years, assuming a long run expected annual inflation rate of 8.76%, the amount you should deposit today to an account which pays a nominal annual interest rate of 10% is closest to: Select one: a. $89,282 b. $16,275 c. $58,516 0 d. $73,943 For an effective annual interest rate (ER) of 8.24%, the future value of an investment that pays $250 per quarter and lasts 20 years is closest to: Select one: a. $18,519 b. $48,443 C. $9,936 d. $33,736

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