How long will it take for GH¢300 to grow to GH¢1,500 at the interest rate specified? 4 percent 8 percent 16 percent Would you rather receive GH¢1,000 a year for 10 years or GH¢800 a year for 15 years if interest rate is 7 percent? interest rate is 18 percent? Why do your answers to (a) and (b) differ? You will require GH¢1,200 in 5 years. If you earn 6% interest on your funds, how much will you need to invest today in order to reach your savings goal? Anuonyam plans to deposit GH¢80 in an account at the end of each of the next 20 years. If the account earns 17%, how much will be in the account at the end of the 20years? Once attends church once in a year during the watch night and uses the occasion to pay his tithe of GH¢50. Assuming his tithe account in Heaven grows at the rate of 24% what is the PV of his investment if he lives for the next 20 years. Smart heard about the Ghana Govt’s ‘Smart Borrowing’ concept and borrowed GH¢15,000 to have a successful wedding and pledged his wife & future uncertain children as collateral security. He wants to pay off the loan in 12 monthly instalments otherwise the bank will come for his wife & children born to them since they were pledged as collateral for the loan. What should the monthly repayments be if the annual interest rate is 18%?
How long will it take for GH¢300 to grow to GH¢1,500 at the interest rate specified? 4 percent 8 percent 16 percent Would you rather receive GH¢1,000 a year for 10 years or GH¢800 a year for 15 years if interest rate is 7 percent? interest rate is 18 percent? Why do your answers to (a) and (b) differ? You will require GH¢1,200 in 5 years. If you earn 6% interest on your funds, how much will you need to invest today in order to reach your savings goal? Anuonyam plans to deposit GH¢80 in an account at the end of each of the next 20 years. If the account earns 17%, how much will be in the account at the end of the 20years? Once attends church once in a year during the watch night and uses the occasion to pay his tithe of GH¢50. Assuming his tithe account in Heaven grows at the rate of 24% what is the PV of his investment if he lives for the next 20 years. Smart heard about the Ghana Govt’s ‘Smart Borrowing’ concept and borrowed GH¢15,000 to have a successful wedding and pledged his wife & future uncertain children as collateral security. He wants to pay off the loan in 12 monthly instalments otherwise the bank will come for his wife & children born to them since they were pledged as collateral for the loan. What should the monthly repayments be if the annual interest rate is 18%?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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- How long will it take for GH¢300 to grow to GH¢1,500 at the interest rate specified?
- 4 percent
- 8 percent
- 16 percent
- Would you rather receive GH¢1,000 a year for 10 years or GH¢800 a year for 15 years if
- interest rate is 7 percent?
- interest rate is 18 percent?
- Why do your answers to (a) and (b) differ?
- You will require GH¢1,200 in 5 years. If you earn 6% interest on your funds, how much will you need to invest today in order to reach your savings goal?
- Anuonyam plans to deposit GH¢80 in an account at the end of each of the next 20 years. If the account earns 17%, how much will be in the account at the end of the 20years?
- Once attends church once in a year during the watch night and uses the occasion to pay his tithe of GH¢50. Assuming his tithe account in Heaven grows at the rate of 24% what is the PV of his investment if he lives for the next 20 years.
- Smart heard about the Ghana Govt’s ‘Smart Borrowing’ concept and borrowed GH¢15,000 to have a successful wedding and pledged his wife & future uncertain children as collateral security. He wants to pay off the loan in 12 monthly instalments otherwise the bank will come for his wife & children born to them since they were pledged as collateral for the loan. What should the monthly repayments be if the annual interest rate is 18%?
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