Question
If you wish to accumulate $140,000 in 6 years, how much must you deposit today in an account that pays a quoted annual interest rate
If you wish to accumulate $140,000 in 6 years, how much must you deposit today in an account that pays a quoted annual interest rate of 11% with monthly compounding of interest?
Question 13 options:
| $72,577.07 |
| $74,849.72 |
| $99,550.12 |
| $66,117.71 |
| $124,250.53 |
Question 14 (3.5 points)
You plan to accumulate $136,000 over a period of 25 years by making equal annual deposits in an account that pays an annual interest rate of 15% (assume all payments will occur at the beginning of each year). What amount must you deposit each year to reach your goal?
Question 14 options:
| $489.06 |
| $639.12 |
| $4,131.36 |
| $5,878.92 |
| $555.76 |
Question 15 (3.5 points)
You are valuing an investment that will pay you nothing the first two years, $7,000 the third year, $9,000 the fourth year, $13,000 the fifth year, and $19,000 the sixth year (all payments are at the end of each year). What is the value of the investment to you now if the appropriate annual discount rate is 14.00%?
Question 15 options:
| $19,806.47 |
| $25,461.46 |
| $48,000.14 |
| $38,240.89 |
| $53,433.76 |
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