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Please do answer these questions correctly.. i will be grateful... thank you A rich aunt has promised you $6,000 one year from today. In addition,
Please do answer these questions correctly.. i will be grateful...
thank you
A rich aunt has promised you $6,000 one year from today. In addition, each year after that, she has promised you a payment (on the anniversary of the last payment) that is 3% larger than the last payment. She will continue to show this generosity for 20 years, giving a total of 20 payments. If the interest rate is 9%, what is her promise worth today? The present value of the aunt's promise is $. (Round to the nearest dollar.) Which do you prefer: a bank account that pays 4.5% per year (EAR) for three years or a. An account that pays 2.9% every six months for three years? b. An account that pays 7.7% every 18 months for three years? c. An account that pays 0.46% per month for three years? (Note: Compare your current bank EAR with each of the three alternative accounts. Be careful not to round any intermediate steps less than six decimal places.) If you deposit $1 into a bank account that pays 4.5% per year for three years: The amount you will receive after three years is $ (Round to five decimal places.)Step by Step Solution
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