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the following question has multiple parts to it please answer all parts. thank you Score: 0 of 5 pts 2 of 6 (2 complete) HW
the following question has multiple parts to it please answer all parts. thank you
Score: 0 of 5 pts 2 of 6 (2 complete) HW Score: 9.52%, 2 of 21 pts P5-5 (similar to) Question Help Time value Personal Finance Problem You have $4,700 to invest today at 11% interest compounded annually. a. Find how much you will have accumulated in the account at the end of (1) 6 years, (2) 12 years, and (3) 18 years. b. Use your findings in part a to calculate the amount of interest earned in (1) the first 6 years (years 1 to 6), (2) the second 6 years (years 7 to 12), and (3) the third 6 years (years 13 to 18). c. Compare and contrast your findings in part b. Explain why the amount of interest earned increases in each succeeding 6-year period. a. (1) At the end of 6 years, the amount you will have accumulated is $. (Round to the nearest cent.) Score: 0 of 2 pts 3 of 6 (2 complete) HW Score: 9.52%, 2 of 21 pts P5-13 (similar to) Question Help Time value Personal Finance Problem Jim Nance has been offered an investment that will pay him $300 three years from today. a. If his opportunity cost is 11% compounded annually, what value should he place on this opportunity today? b. What is the most he should pay to purchase this payment today? c. If Jim can purchase this investment for less than the amount calculated in part (a), what does that imply about the rate of return that he will earn on the investment? a. The value Jim should place on this opportunity today is $ (Round to the nearest cent.)Step by Step Solution
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