Question
You have an opportunity to invest $2,500 today and receive $3,000 in three years. What would be the return on your investment if you accepted
You have an opportunity to invest $2,500 today and receive $3,000 in three years. What would be the return on your investment if you accepted this opportunity?(Round answer to 2 decimal places, e.g. 52.75.) Return on investment __________%
If the bank pays 8 percent interest per year without compounding, how much simple interest will she have earned and how much money will she have at the end of five years?
Future value $_______________
If the bank pays 8 percent interest per year without compounding, how much simple interest will she have earned and how much money will she have at the end of five years?
Future value$____________
How much money will she have in five years if the bank pays compound interest with annual compounding?(Round answers to 2 decimal places, e.g. 52.75.)
Future value$________
How much of the earnings in part b, will be interest on interest?(Round answers to 2 decimal places, e.g. 52.75. )Interest on interest $____________
Sandhill, Inc., is expecting cash inflows of $14,200, $11,400, $12,500, and $9,650 over the next four years. What is the present value of these cash flows if the appropriate discount rate is 10 percent?(Round answer to 2 decimal places, e.g. 52.75.) Present value of cash flows_________
$
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