Question
i have some questions from finace 1a please help me solve it thank you so much 1 : You invest in a mutual fund today
i have some questions from finace 1a please help me solve it thank you so much
1: You invest in a mutual fund today that pays 9 percent interest annually. How long in years will it take to double your money? (Round your answer to 2 decimal places.)
2: A printing firm needs $50,000 in 2 years to purchase a new poster printing machine. The managers consult 2 banks. Under the current market condition, Bank A offer a 3.5% per annum compounded half yearly on the company's saving account and Bank B offer a 3.2% per annum compounded quarterly, based on your calculation, which bank should the company choose to make a deposit today? (Correct to the nearest cent)
3: You have been offered with two investment opportunities, A and B. Both investments will provide you with the same accumulated value in 3 years' time. For option 1, you need to investment $50,000, today and earn an interest rate 6.5% per annum compounded monthly. How much should you invest in Option B today, if the interest rate you can earn is 5% per annum compounded semi-annually? (Correct to the nearest cent.)
4: An amount of $10,000 is invested in a bank account for three and a half year. The account pays interest of 6% per annum compounded monthly for the first 2 years, then at a 7% per annum compounded monthly for 18 months. How much is the account at the end of this time if no withdrawals are made? (Correct to the nearest cent.)
5:. Your parents planned to invest in a house in Sydney Western area for $1,000,000, however, they decided to postpone the investment for two years, and instead they are going to deposit the $1,000,000 into a bank account and earn an interest rate 4% per annum compounded monthly for the first year and 4.5% per annum compounded monthly for the second year. After two year, what will be the highest house price that your parents can afford?
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