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Which of the following investments would have the highest value at the end of 10 years? Assume that the annual interest rate for all investments
Which of the following investments would have the highest value at the end of 10 years? Assume that the annual interest rate for all investments is the same and is greater than zero. Investment D pays $40,000 at the end of 10 years (one payment in total). Investment C pays $16,000 at the end of every 5-year period for the next 10 years (2 payments in total). Investment A pays $2,500 at the beginning of every year for the next 10 years (10 payments in total). Investment B pays $4,250 at the beginning of every 2-year period for the next 10 years (5 payments in total). Investment E pays $2,500 at the end of every year for the next 10 years (10 payments in total). Suppose you are buying your first home for $500,000, and you have $100,000 for your down payment. You have arranged to finance the remainder with a 15year, annual payment, amortized mortgage at a 6.5% interest rate, with the first payment due in one year. What will your annual payments be? $26,666.67 $53,176.39 $30,630.98 $33,333.33 $42,541.11 Which of the following investments would have the highest value at the end of 10 years? Assume that the annual interest rate for all investments is the same and is greater than zero. Investment D pays $40,000 at the end of 10 years (one payment in total). Investment C pays $16,000 at the end of every 5-year period for the next 10 years (2 payments in total). Investment A pays $2,500 at the beginning of every year for the next 10 years (10 payments in total). Investment B pays $4,250 at the beginning of every 2-year period for the next 10 years (5 payments in total). Investment E pays $2,500 at the end of every year for the next 10 years (10 payments in total). Suppose you are buying your first home for $500,000, and you have $100,000 for your down payment. You have arranged to finance the remainder with a 15year, annual payment, amortized mortgage at a 6.5% interest rate, with the first payment due in one year. What will your annual payments be? $26,666.67 $53,176.39 $30,630.98 $33,333.33 $42,541.11
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