Question
Your neighbor offers you an investment opportunity, which will pay one single payment of $2,000 five years from today. The investment requires a single payment
Your neighbor offers you an investment opportunity, which will pay one single payment of $2,000 five years from today. The investment requires a single payment of $1,500 today. The return on the investment is ____% A. 4.195
B. 4.729 C. 5.361 D. 5.922 E. 6.961
An investment promises to pay you a return of 10% over the 5 year life of the investment. You invested $30,000 today. The investment will pay you $10,000 in year 2, $8,000 in year 3. You must receive $___ in year 5 to assure a 10% p.a. return. You receive payments only in year 2, 3, and 5.
A. 23,985.64 B. 25,325.30 C. 26,487.19 D. 27,315.43 E. 28,955.30
If you deposit $700 per year beginning today (t = 0) until 15 years from today (t = 15) into an account earning 6% p.a. How much will you have in your account right after you make the last deposit?
A. $16,293.18 B. $16,993.18 C. $17,388.26 D. $17,970.77 E. $19,049.02
You have invested your money into a project that will pay you $1,000 starting 5 years from today (t = 5) and will continue to pay out until 20 years from today (t = 20). If the interest rate is 7% p.a., then the value of your investment today (t=0) is $______. A. 6,735.33
B. 6,948.38 C. 7,206.80 D. 9,107.91 E. 9,446.65
Your credit card company is advertising a 17% APR. What is the annual rate you are actually paying if interest is compounded monthly (or "effective annual rate")? A. 12.117% B. 12.932%
C. 14.167%
D. 18.389%
E. 20.745%
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