Question
Question 3 (12 marks) What are the likely characteristics of small but growing businesses that create financing problems? 4 marks Don Brant is currently considering
Question 3 (12 marks)
- What are the likely characteristics of small but growing businesses that create financing problems?
4 marks
- Don Brant is currently considering investing specified amounts in each of four investment opportunities described below. For each opportunity, determine the amount of money he will have at the end of the given investment horizon. 8 marks
Investment A: Invest a lump sum of $2,750 today in an account that pays 6% annual interest and leave the funds on deposit for exactly 15 years.
Investment B: Invest the following amounts at the beginning of each of the next five years in a venture that will earn 9% annually and measure the accumulated value at the end of exactly 5 years:
Beginning of Year | Amount |
1 | $900 |
2 | 1,000 |
3 | 1,200 |
4 | 1,500 |
5 | 1,800 |
Investment C: Invest $1,200 at the end of each year for the next 10 years in an account that pays 10% annual interest and determine the account balance at the end of year 10.
Investment D: Make the same investment as in investment C but place the $1,200 in the account at the beginning of each year.
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