Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer all questions. will upvote. Q.2-3) Assume you received a bonus of $2,000 that you will invest now. You want to calculate the equivalent

please answer all questions. will upvote. image text in transcribed

Q.2-3) Assume you received a bonus of $2,000 that you will invest now. You want to calculate the equivalent value after 20 years, when you plan to use all the resulting money as the down payment on an island vacation home. Assume interest rate is 10% per year. 2. Which of the following values is NOT correct with regard to the symbols? a. P: $2,000 b. A: $2,000 c. i: 10% per year d. n: 20-year 3. What is the equivalent value of F ? (Find the closest answer) a. $5,307 b. $8,354 c. $13,455 d. $40,000 4. To raise money for a new business, a man asked you to loan him some money. He offers to pay you $50,000 at the end of 5 years. How much should you give him now if you want 10% interest per year on your money? Find equivalent value of present? (Choose the closest answer) a. $11,970 b. $19,275 c. $30,695 d. $31,045 5. If interest is compounded quarterly, the interest period is four months. a. True b. False 6. Which of the following statements is NOT correct with regard to interest rate? a. Interest rate is compounded more frequently than once a year b. Nominal rate always greater than effective rate c. Annual percentage rate (APR) means a nominal interest for loans d. Annual percentage yield (APY) is an actual rate for investment

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_2

Step: 3

blur-text-image_3

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

Budgets And Financial Management In Higher Education

Authors: Margaret J. Barr, George S. McClellan

3rd Edition

1119287731, 9781119287735

More Books

Students also viewed these Finance questions