Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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I need help completing 4-7

Class,
Here are some formulas that you can refer to for Set 1 Parts 1 and 2
#1 Use the PV Formula
PV = 60,000*1/(1+0.09)^8
#2 Use the FV Formula
FV = 110,000*(1+0.11)^9
#3 Use the PV Formula
PV = 200,000*1/(1+.12)^15
Example Part 2
#1 = NPV(Discount Rate, range of values)+initial investment.
#2 = NPV(Discount Rate, range of values)+initial investment.
I
In addition to your text, you can also visit Investopedia.com. There you should be able the
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Transcribed Image Text:Class, Here are some formulas that you can refer to for Set 1 Parts 1 and 2 #1 Use the PV Formula PV = 60,000*1/(1+0.09)^8 #2 Use the FV Formula FV = 110,000*(1+0.11)^9 #3 Use the PV Formula PV = 200,000*1/(1+.12)^15 Example Part 2 #1 = NPV(Discount Rate, range of values)+initial investment. #2 = NPV(Discount Rate, range of values)+initial investment. I In addition to your text, you can also visit Investopedia.com. There you should be able the
4. You have been offered $3,000 in 4 years for
providing $2,000 today into a business venture
with a friend. If interest rates are 10%, is this a
good investment for you?
5. What will $82,000 grow to be in 11 years if it
is invested today at 8% and the interest rate is
compounded monthly?
6. How many years will it take for $136,000 to
grow to $468,000 if it is invested in an account
with an annual interest rate of 8%?
7. At what interest rate must $112,000 be
invested so that it will be worth $392,000 in 14
vears?
Insert your answe
Insert your answe
Insert your answe
expand button
Transcribed Image Text:4. You have been offered $3,000 in 4 years for providing $2,000 today into a business venture with a friend. If interest rates are 10%, is this a good investment for you? 5. What will $82,000 grow to be in 11 years if it is invested today at 8% and the interest rate is compounded monthly? 6. How many years will it take for $136,000 to grow to $468,000 if it is invested in an account with an annual interest rate of 8%? 7. At what interest rate must $112,000 be invested so that it will be worth $392,000 in 14 vears? Insert your answe Insert your answe Insert your answe
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