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please god help me in solutions step by step please god A) Compute the present value of the following investment, 13 years, 12% interest rate
please god help me in solutions step by step please god
A) Compute the present value of the following investment, 13 years, 12% interest rate and $18,000. Draw the time line when you done. (10 marks) B) Assume the total cost of a university education will be $200,000 when your child enters university in 15 years. You presently have $73000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's university education? Draw the time line when you done. (10 marks) Question. 3 A) Investment X offers to pay you $5000 per year for eight years, whereas Investment Y offers to pay you $6000 per year for five years. Which of these cash flow streams has the higher present value if the discount rate is 6 per cent? If the discount rate is 10 per cent? (10 marks) B) Indooroopilly Bank charges 14 per cent compounded monthly on its business loans. Indy United Bank charges 14 per cent compounded semiannually. As a potential borrower, which bank would you go to for a new loan? (10 marks)
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