Question
Jared has a certificate of deposit that will be worth $9,000 at maturity. The market rate for CD's like this is 12% with monthly compounding.
Jared has a certificate of deposit that will be worth $9,000 at maturity. The market rate for CD's like this is 12% with monthly compounding. If the CD is meant to mature 20 years after purchase, what was the price Jared paid for the CD?
Group of answer choices
$845.79
$450.00
$933.00
$826.25
Tammy has an heirloom that she's sure she can sell for $18,500 if she holds onto it for 16 years. She has a mutual fund that earns 12% interest, compounding monthly. Tammy was just offered $3,000 for this antique today. What is the PV of the heirloom? Should she sell it today?
Group of answer choices
$3,017.75. No, don't sell today.
$3,000.00. Yes, sell today.
$3,116.56. No, don't sell today.
$2,738.22. Yes, sell today.
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