Question
THREE FINANCE for BUSINESS QUESTIONS, ~all unrelated to each other 1. Alpha Company invests $15,600 at an interest rate of 14% for five years. What
THREE FINANCE for BUSINESS QUESTIONS, ~all unrelated to each other
1. Alpha Company invests $15,600 at an interest rate of 14% for five years. What is the difference between simple and compound interests? Assume that in case the interest rate compounds semiannually.
2. Lets assume there is a firm that wants to invest $34,000 in a project with an interest rate of 9% annually, and that the project will last for twelve years. What will be the interests coming from the project if the firm chooses not to reinvest any of its earnings? Assume the interest rate compounds annually.
3. Let us assume there is a project that will bring in $38,509.42 six years from now, assuming the interest rate of 9.6% that will compound monthly. What is the projects present value?
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