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You receive a lump sum aware of $25,000 and you decided to invest that money into an investment that will earn 9% annually. How much
You receive a lump sum aware of $25,000 and you decided to invest that money into an investment that will earn 9% annually. How much will the lump sum be worth after 7 years? $34,511 $139,500 $100,824 $45,701 Your uncle announces a gift for you. You can receive $10,000 at the end of 20 years; or, he will offer you $1,000 today. Assuming that 6% is the interest rate you can achieve over the years, what is the Present Value of the $10,000 gift you could potentially receive? $3,238 $3,233 $3,118 $3,175 A corporation issued a bond for $1,000 with a 10 year maturity in 2010 is now facing payment of the principal to the current bondholder here in 2020. The original bond was issued with a coupon rate of 8%; however, the current interest rates, and thus the Required Rate of Return required by the other bondholders, have now settled to 3%. The maturity amount of principal that the issuer owes to the bondholders equals A Premium over $1,000 A Discount below $1,000 None of the above. The Maturity Value of $1,000
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