Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If $18,000 is invested at 10% per year, in approximately how many years will the investment double: O 8.4 years 0 14.6 years 0 7.3

image text in transcribed

If $18,000 is invested at 10% per year, in approximately how many years will the investment double: O 8.4 years 0 14.6 years 0 7.3 years 0 11 years 1 point Sue was evaluating an investment opportunity which will pay her exactly $100,000 at some point in the future, when she realized that the appropriate interest rate is 10% rather than 8%. Since the cash flows of the investment did not change, Sue should: O Pay less in present value dollars for the investment O Pay the same amount in present value dollars for the investment O Cannot answer as we need information on number of years i.e., when cash flow will be received O Pay more in present value dollars for the investment 1 point What is the present value of $100,000 to be received in 7 years from now assuming interest rates are 10% per year: $64,145 $60,000 $51,316 $89.803

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

Biblical Finance Reflections On Money Wealth And Possessions

Authors: Mark Lloydbottom, Keith Tondeur

1st Edition

0956395023, 978-0956395023

More Books

Students also viewed these Finance questions