Question
Suppose you will invest $1,800 each year at the interest rate of 10.2%, beginning one year from now. Assuming the interest rate compounds annually, what
Suppose you will invest $1,800 each year at the interest rate of 10.2%, beginning one year from now. Assuming the interest rate compounds annually, what will be the total future value of these investments 25 years from now?
$195,363.53
$190,624.42
$208,249.93
$182,436.87
Assume ABC Corp. finances a new manufacturing machine with a $230,000 loan, which it plans to pay for with 10-year annuity payments that will begin next year. Assuming the interest rate is 8.2% and it will compound annually, which of the following is true?
ABC Corp. would have paid less each year with a lower interest rate.
ABC Corp. will need to pay $34,586.63 each year, paying back in full 10 years from now
Both are correct
Neither are correct
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