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please solve 2 3 and 4 Question 2: Peter Chan has deposited $20,000 in a guaranteed investment account with a promised rate of 5% compounded
please solve 2 3 and 4
Question 2: Peter Chan has deposited $20,000 in a guaranteed investment account with a promised rate of 5% compounded annually. He plans to leave it there for 10 full years when he will make a down payment on a car after graduation. How much of a down payment will he be able to make? Question 3: Mr. Fish wants to build a house in 5 years. He estimates that the total cost will be $250,000. If he can put aside $40,000 at the end of each year (i.e., t=1, 2, 3, 4, and 5), what rate of return must he earn in order to have the amount needed? Question 4: Suppose that your required rate of return is 12 percent. You are offered an investment into an asset that will yield $120,800 at the end of the fifth year. What is the maximum price that you would be willing to pay for this asset Step by Step Solution
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