Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

HELP -All questions on page- (The remaining answer choices of Number 15 is in second picture) 11. Ten years ago, Jane invested $1,000 and locked

HELP -All questions on page-
(The remaining answer choices of Number 15 is in second picture) image text in transcribed
image text in transcribed
11. Ten years ago, Jane invested $1,000 and locked in a 7 percent annual interest rate for 30 years (end 20 years from now). Mike can made a twenty-ye in a 6 percent interest rate. How much money should he invest now in order to have the same amount of money in 20 years as Jane? A. $673.75 B. $1,206.59 C. $1,967.15 D. $2,373.54 E. $2,5698.41 ar investment today and lock 12. You are scheduled to receive a $800 cash flow in one year, a $800 cash flow in two years, and you must pay $1,000 in three years. If interest rates are 8 percent per year, what is the combined present value of these cash flows? A. $168.00 B. $600.00 C. $632.78 D. $2,220.44 E. $876.34 13. You expect to receive $1,000 at the end of each of the next 3 years. You will deposit these payments into an account that pays 8 percent compounded annually. What is the future value of these payments, that is, the value at the end of the third year? A. $3,100.00 B. $3,246.40 C. $3,374.40 D. $3,400.96 E. $3,438.27 14. If the present value of an ordinary, 5-year annuity is $6,000 and interest rates are 8 percent, what's the present value of the same annuity due? Hint: Two ways of doing it. A. $5,555.56 B. $6,000.00 C. $6,300.00 D. $6,480.00 E. $6,709.91 15. You deposit $1000 today, followed by $2000 one year from today and $3000 two years from today. The interest rate in the account is 9.9% compounded quarterly. How much will you have in three years'time (three years from today). A. $7081.23 B. $7063.91 C. S6405-80 D. $7039.98 E. $6000.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Money Banking And Financial Markets

Authors: Stephen Cecchetti, Kermit Schoenholtz

6th Edition

1260226786, 9781260226782

More Books

Students also viewed these Finance questions