Mathias purchases a 7-year CD for $5000 with 1.1% APR compounded monthly, and a 7-year bond for $5000 with a 4.3% coupon rate, paid annually. How much will Mathias’s original $10000 investment be worth at the end of the 7 years? Round your answer to the nearest cent.
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- Todd Spodek will invest $5,000 at the beginning of each year for the next 9 years. The interest rate is 8 percent. What is the future value? A. $62,440 B. $67,435 C. $72,435 D. $58,471You purchased a P5,000 bond for P5,100. The bond pays P200 peryear. It is redeemable for P5,050 after 10 years. What is the net rateof interest on your investment? DRAW CASH FLOW DIAGRAMYou deposit $2500 each year into an investment account that earns 8.5% interest for 20 years.Find the value of sn\i. Group of answer choices 11.76470588 16.87675201 51.10869654 48.37701323
- Diego plans to invest $500 per month in their tax-free savings account for the next four years. Currently, the investments Diego has chosen are earning an annual rate of 8%. Approximately how much will Diego have in their tax-free savings account at the end of four years if the investment interest rate remains the same? Question 2 options: $28,175 $25,920 $245,066 $27,037You deposit $2,000 one year and $1000 next year starting year 1 until year 30 with an interest rate of 5% one year and 7% other year. How much money will you have at the end of year thirty if there are different interest rates after year 30 as shown in the diagram below? 0 1 2 3 5% 7% 5% 7% Select one: O a. 117724 O b. 18050 O c. 90000 O d. 106141 O e. 120408 4 2000 1000 2000 1000 wwww **** **** 26 27 28 29 30 5% 1000 2000 1000 2000 1000 7% 5% %7 F?Salvatore has the opportunity to invest in a scheme that will pay $10,000 at the end of each of the next 5 years. He must invest $20,000 at the start of the first year and an additional $20,000 at the end of the first year. What is the present value of this investment if the interest rate is 4%? A) $3,588.11 B) -$5,287.45 C) $5,287.45 D) -$3,588.11
- you are planning to buy 2 securities the first makes equal annual payments of $15,000 per year for ever with the first payment received 18 years from today. The second makes equal annual payments of $5,000 forever with the first payment received 8 years from today. How much would you have to pay for this security today if you plan to make one payment today and another payment of $20,000 3 years from today. Assume the interest rate is currently 12%A man was offered a bond with a face value of ₱1,000,000 which has interest of 8% per year payable semi –annually and due in 10 years. If he wants to earn 6% semi –annually, how much must he pay the bond? Solve and show the solution.Your business associate who owes you $11700 offers to pay you either $8900 now or else to pay you 6 yearly installments of $1950, the first installment paid now. Assume a 5.2% market interest rate, compounded continuously. How much would you have at the end of 6 years if you choose to take the $ 8900 offer now, and you use the market to earn interest on the funds? $ How much would you have at the end of 6 years if you choose to take the installments each year, and you still used the market to earn interest on the the funds? $ Is it better to take the lump sum? (Y for yes, N for no.)
- 1. An engineer paid P 110,000 for a P 100,000 bond that pays P 4,000 per year. In 20 years, the bond will be redeemed for P 105,000. What net rate of interest will the man obtain on his investment?A man can sell his business for $800,000 cash or for $125,000 plus $12'I a. Find the present value of the annuity that is offered if money is worth 10%; compounded annually. b. If he takes the $800,000, spends $125,000 of it, and invests the rest in a 9-year annuity at 10%, compounded annually, what size annuity payment will he receive at the end of each year? c. Which is better, taking the $125,000 and the annuity or taking the cash settlement? a. Find the present value of the annuity that is offered if money is worth 10%, compounded annually. (Type an integer or decimal rounded to the nearest cent as needed.)Your brother has asked you to help him with choosing an investment. He has OMR 5000 to invest today for a period of two years. You identify a bank CD that pays an interest rate of 4.25 percent with the interest being paid quarterly. What will be the value of the investment in two years? Select one: O a. 5107 OMR O b. None of these Oc. 5441 OMR O d. 5341 OMR