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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.
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 investmentStep by Step Solution
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