Question
-Tensay is evaluating an investment that will provide the following returns at the end of each of the following years: year 1, $12,500; year 2,
-Tensay is evaluating an investment that will provide the following returns at the end of each of the following years: year 1, $12,500; year 2, $10,000; year 3, $7,500; year 4, $5,000; year 5, $2,500; year 6, $0; and year 7, $12,500. Walt believes that he should earn an annual rate of 8percent on this investment. How much should he pay for this investment?
-Assume that Nathan Drake started a paper route on January 1, 1970. Since that day, at the end of every three (3) months (first deposit made on April 1, 1970), he deposited $500.00 into a savings account, which paid him interest of 4 percent annually but with quarterly compounding. On January 1, 1980, he took the balance in her savings account and transferred it to an account that paid 11.5% p.a.Assuming that Nathan did not deposit any additional money into the account after the transfer, how much did he have in his account on January 1, 2016?
-On the day that his first child was born, Ezio Auditore de Firenze deposited $3,000 into an investment account. The only purpose for the account was to pay for his sons first year of college tuition. Assume that his son, Flavia, started college on his 18thbirthday and his first year tuition payment had to be made that day. The amount needed on that day was $26,000. If that was indeed the amount of money in the account on Flavias 18thbirthday, what annual rate of return did Ezio earn on his investment account?
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