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12. Your client invests J2 million in a security that matures in 4 years and pays 1 percent annual interest rate compounded annually. Assuming no
12. Your client invests J2 million in a security that matures in 4 years and pays 1 percent annual interest rate compounded annually. Assuming no interim cash flows, which of the following will most likely be the value of the investment at maturity? A. $2.150 million B. $2.600 million, C. $2.671 million, D. None of the above 13. Your client deposits $5 million in a savings account that pays 5 percent per year compounded quarterly. What will be the value of this deposit after 2.5 years? A. $5.625 million B. $5.649 million C. $5.661 million. D. None of the above 14. Grim Smith plans to invest 12 million, three years from now. The rate of return has been estimated at 8 percent per year. What is the future value of this investment 11 years from now? A. 22.21 million. B. Y27.98 million. C. 35.25 million D. None of the above 15. A three-year CD offers a stated annual interest rate of 10 percent compounded quarterly. Given an initial investment of $80,000, which of the following is most likely to be the value of the CD at maturity? A. $86,151 B. $86,628. C. $107,591 D. None of the above 16. Donald Trump invests $3 million in a bank that promises to pay 4 percent annual interest rate compounded daily. Assuming 365 days in a year, what will be the value of Donald's investment at the end of one year? A. $3.003 million B. $3.122 million C. $3.562 million. D. None of the above 17. You invest $50,000 for three years that will earn 3.6 percent compounded continuously. What will be the value of your investment after three years? A. $51,832 B. $55,702. C. $55,596. D. None of the above
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