Questions 53, 57, 60. Help please thank you so much.

CHAPTER 5 Time Value of Money217 b. If year-1 values represent initial deposits in a savings account paying annual in- each account? terest, what is the annual rate of interest earned on Compare and discuss the growth rate and interest rate found in parts a and b, c. respectively Personal Finance Problem Rate of returm Rishi Singh has $1,500 to invest. His investment counselor suggests an investment that pays no stated interest but will retum $2,000 at the end of 3 years. P5-52 a. What annual rate of retun will Rishi earn with this investment? b. Rishi is considering another investment, of equal risk, that earns an annual return of 8%, which investment should he make, and why? Personal Finance Problem Rate of return and investment choice Clare Jaccard has $5,000 to in she is only 25 years old, she is not concemed about the length of the in vestment's life. What she is sensitive to is the rate of return she will earn on the investment. With the help of her financial advisor, Clare has isolated four equally risky investments, each providing a single amount at the end of its life, as shown in the following table. All the investments require an initial $$,000 payment. vest. Because P5-53 Investment Single amount Investment life (years $ 8,400 15,900 7,600 13,000 10 a. Calculate, to the nearest 1%, the rate of return on each of the four investments available to Clare. b. Which investment would you recommend to Clare, given her goal of maximizing the rate of return? P5-54 Rate of returm: Annuity What is the rate of retura on an investment of $10,606 if the company will receive $2,000 each year for the next 10 years? Personal Finance Problem Choosing the best annuity Raina Herzig wishes to choose the best of four immediate-te- P5-55 tirement annuities available to her. In each case, in exchange for paying a single premium today, she will receive equal, annual, end-of-year cash benefits for a specified number of years. She considers the annuities to be equally risky and is nox concerned about their dif- fering lives. Her decision will be based solely on the rate of return she will earn on each annuity. The key terms of the four annuities are shown in the following table. AneuityPremium paid today Aneual bencfis Life (years) 530,000 25,000 40,000 $3,100 3,900 4,200 4,000 20 10