JG Asset Services is recommending that you invest $925 in a 5-year certificate of deposit (CD) that pays 3.5% interest, compounded annually. How much will you have when the CD matures?
Select the correct answer.
How much would $7,875 due in 50 years be worth today if the discount rate were 7.5%?
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Your friend offers to pay you an annuity of $4,600 at the end of each year for 3 years in return for cash today. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?
Select the correct answer.