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Suppose you invest $ 5 0 0 today. If your investment pays 6 % interest per year, how much will you have at the end
Suppose you invest $ today. If your investment pays interest per year, how much will you have at the end of four years?
Suppose you invest $ in a bank CD that pays interest per year. How much money will you receive when you cash in the CD in years?
Suppose you invest $ in a bank CD that pays interest per year, but it is compounded monthly. How much money will you receive when you cash in the CD in years? Hint: FVPV
In this case, represents the number of times interest is compounded per year.
Suppose you receive a $ gift from your rich aunt. You decide to invest the gift in the stock market by buying an S&P ETF. Suppose the ETF earns in the first year, in the second year, in the third year, in the fourth year, and then for three straight years. How much will your investment be worth after years?
Suppose you buy shares of Facebook FB Stock for $ per share. At the end of years, FB is selling for $ per share. What return did you earn? State your answer as an APR Annual percentage return
From question # what rate of return, stated in annual terms, did you earn on your investment? What was the average rate of return?
Hint: Avg rate For example, dots.
Suppose you are confident you can earn per year by investing in the stock market. If your goal is to be a millionaire in years, how much would you need to invest today?
How much would you be willing to pay for an investment that promises to pay you $ in years? Assume your required return on such an investment is per year.
Suppose you paid $ for an investment that promises to pay you $ in years. If you required return is per year, was this a good deal?
If you invest $ today in an account earning per year, how many years until you have doubled your money? Tripled your money?
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