Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an additional $20,000 to that account. You earned 8%, compounded semi-annually, for the first ten years, and 6.5%, compounded annually, for the last five years. If you wish to have $85,000 now, how much should you have invested 15 years ago?
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Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an additional $20,000 to that account. You earned 8%, compounded semi-annually, for the first ten years, and 6.5%, compounded annually, for the last five years.
If you wish to have $85,000 now, how much should you have invested 15 years ago?
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- Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added anadditional $20,000 to that account. You earned 8%, compounded semi-annually, for the first ten years,and 6.5%, compounded annually, for the last five years. How much money do you have in your account today?Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an additional $20,000 to that account. You earned 8%, compounded semi-annually, for the first ten years, and 6.5%, compounded annually, for the last five years. Required: a) What is the effective annual interest rate (EAR) you would get for your investment in the first 10 years? b) How much money do you have in your account today?c) If you wish to have $85,000 now, how much should you have invested 15 years ago? Week 4 Giant Equipment Ltd. is considering two projects to invest next year. Both projects have the same start-up costs. Project A will produce annual cash flows of $42,000 at the beginning of each year for eight years. Project B will produce cash flows of $48,000 at the end of each year for seven years. The company requires a 12% return. Required: a) Which project should the company select and why?b) Which project should the company select if the interest rate is 14% at the cash flows…Twelve years ago, you deposited $25,500 into an investment fund.Five years ago, you added an additional $15,000 to that account. You earned 9%,compounded semi-annually, for the first 12 years, and 7.5%, compoundedannually, for the last five years. Required:a. What is the effective annual interest rate (EAR) you would get for yourinvestment in the first 12 years?b. How much money do you have in your account today?c. If you wish to have $75 000 now, how much should you have invested 17 yearsago?
- Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added anadditional $20,000 to that account. You earned 8%, compounded semi-annually, for the first ten years,and 6.5%, compounded annually, for the last five years.Required:a) What is the effective annual interest rate (EAR) you would get for your investment in the first 10years?Fifteen years ago deposited 12500 in to an investment fund.five years ago you added an additional $20000 to that account.you earn 8% compound semi annually for the first ten years,and 6.5% compound annually for the last five years. a)what is the effective interest rate(EAR) you would get for your investment in the first 10yeras? b)how much money do you have in your account today? c)if you wish to have $8500now,how much should you have invested 15uears a go?Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an additional $2o,000 to that account. You earned 8%, compounded semi- annually, for the first ten years, and 6.5%, compounded annually, for the last five years. Required: a) What is the effective annual interest rate (EAR) you would get for your investment in the first 10 years? b) How much money do you have in your account today? c) If you wish to have $85,000 now, how much should you have invested 15 years ago?
- Fifteen years ago deposited 12500 in to an investment fund.five years ago you added an additional $20000 to that account.you earn 8% compound semi annually for the first ten years,and 6.5% compound annually for the last five years. a)what is the effective interest rate(EAR) you would get for your investment in the first 10yeras? b)how much money do you have in your account today? c)if you wish to have $85000 now,how much should you have invested 15uears a go?Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an additional $20,000 to that account. You earned 8%, compounded semi-annually, for the first ten years, and 6.5%, compounded annually, for the last five years. Required: a) What is the effective annual interest rate (EAR) you would get for your investment in the first 10 years? (2 marks) b) How much money do you have in your account today? (4 marks) c) If you wish to have $85,000 now, how much should you have invested 15 years ago? (4 marks)