Question
Suzie has $16,000 in her investment account today. She saves an additional $2,000 a year for the next three years and earns 8% interest compounded
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Suzie has $16,000 in her investment account today. She saves an additional $2,000 a year for the next three years and earns 8% interest compounded annually. How much money will she have in her account three years from now?
A. $22,000.00
B. $30,780.05
C. $26,648.19
D. $26,997.91
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You just won a prize and will receive $5,000 today plus $5,000 one year from now. What is this prize worth to you today, if you can earn 9% on your investments?
A. $9,174.31
B. $9,587.16
C. $10,000.00
D. $10,450.00
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If a bond's coupon rate equals its yield to maturity, the bond is selling at ____________.
A. a discount
B. par
C. a premium
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