Questions Lauren invests $10,000 at a simple interest of 10 How much interest will Lauren earn after 5 years How much total will be in the account after 5 years Nan and Neal are twins Nan invests $5,000 at 7 percent at age 25 Neal invests $5,000 at 7 percent at age 30 Both investments compound interest annually Both twins retire at age 60 and neither adds nor withdraws funds prior to retirement Who will have more money in their retirement account By how much Your older sister deposited $2,500 today at 6 5 percent interest for 15 years However, you can only earn 6 25 percent interest How much more money must you deposit today than your sister did if you are to have the same amount saved at the end of the 15 years When you retire 45 years from now, you want to have $1 25 million saved You think you can earn an average of 7 6 percent on your investments To meet your goal, you are trying to decide whether to deposit a lump sum today, or to wait and deposit a lump sum five years from today to fund this goal How much more will you have to deposit if you wait for five years before making the deposit You have just received notification that you have won the $1 25 million first prize in the Centennial Lottery However, the prize will be awarded on your 100th birthday, 79 years from now The appropriate discount rate is 6 4 percent What is the present value of your winnings In 1903, the winner of a competition was paid $50 In 2017, the winner's prize was $235,000 What will the winner's prize be in 2040 if the prize continues increasing at the same rate You're trying to save to buy a new $68,000 sports car Currently, you have saved $36,840 which is invested at 4 9 percent annual interest How many years will it be before you purchase the car, assuming the price of the car remains constant On January 1, 2015, SDNOB Company issues 16 , $100,000 5 year bonds and the bonds pay interest semi annually on June 30 and Dec 31 every year The prevailing market interest rate at the date of issue is 20 Calculate the present value of the bonds at the date of issue Assume that the interest rate rises to 30 after two years, what would the price of these bonds on Jan 1, 2017 Assume that the interest rate falls to 10 after two years, what would the price of these bonds on Jan 1, 2017

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Questions: Lauren invests $10,000 at a simple interest of 10%. How much interest will Lauren earn after 5 years? How much total will be in

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Lauren invests $10,000 at a simple interest of 10%. How much interest will Lauren earn after 5 years? How much total will be in the account after 5 years?
Nan and Neal are twins. Nan invests $5,000 at 7 percent at age 25. Neal invests $5,000 at 7 percent at age 30. Both investments compound interest annually. Both twins retire at age 60 and neither adds nor withdraws funds prior to retirement. Who will have more money in their retirement account? By how much?
Your older sister deposited $2,500 today at 6.5 percent interest for 15 years. However, you can only earn 6.25 percent interest. How much more money must you deposit today than your sister did if you are to have the same amount saved at the end of the 15 years?
When you retire 45 years from now, you want to have $1.25 million saved. You think you can earn an average of 7.6 percent on your investments. To meet your goal, you are trying to decide whether to deposit a lump sum today, or to wait and deposit a lump sum five years from today to fund this goal. How much more will you have to deposit if you wait for five years before making the deposit?
You have just received notification that you have won the $1.25 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday, 79 years from now. The appropriate discount rate is 6.4 percent. What is the present value of your winnings?
In 1903, the winner of a competition was paid $50. In 2017, the winner's prize was $235,000. What will the winner's prize be in 2040 if the prize continues increasing at the same rate?
You're trying to save to buy a new $68,000 sports car. Currently, you have saved $36,840 which is invested at 4.9 percent annual interest. How many years will it be before you purchase the car, assuming the price of the car remains constant?
On January 1, 2015, SDNOB Company issues 16%, $100,000 5-year bonds and the bonds pay interest semi-annually on June 30 and Dec 31 every year. The prevailing market interest rate at the date of issue is 20%.
1. Calculate the present value of the bonds at the date of issue
2. Assume that the interest rate rises to 30% after two years, what would the price of these bonds on Jan 1, 2017?
3. Assume that the interest rate falls to 10% after two years, what would the price of these bonds on Jan 1, 2017?