Oprah is deciding between investment options. Both investments earn an interest rate of 7%, but interest on the first investment is compounded annually, while interest on the second investment is compounded semiannually. Which investment would you advise Oprah to choose? Why?

Isabella purchased $20,000 worth of 26-week T-Bills for $19,700. What will be the rate of return on her investment? (Round your answer to two decimal places.)

Nick can invest $10,000 in either one of two annuities. Annuity A has a 6% annual interest rate and requires a starting principal of $9,000, plus annual $100 deposits for the next 10 years. Annuity B has a 12% annual interest rate and requires a starting principal of $9,000, plus annual $200 deposits for the next 5 years. What is the difference between the final balances of the two annuities?

Yuri is willing to invest $35,000 for six years, and is an economically rational investor. He has identified three investment alternatives (X, Y, and Z) that vary in their method of calculating interest and in the annual interest rate offered. Since he can only make one investment during the six-year investment period, complete the following table and indicate whether Yuri should invest in each of the investments. Note: When calculating each investment’s future value, assume that all interest is earned annually. The final value should be rounded to the nearest whole dollar. Investment Interest Rate and Method Expected Future Value Make this investment? X 9% compound interest        Y 12% compound interest        Z 12% simple interest

Answer each of the following independent questions. Ignore personal income taxes. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Required: 1. Suppose you invest $4,100 in an account bearing interest at the rate of 10 percent per year. What will be the future value of your investment in five years? 2. Your best friend won the state lottery and has offered to give you $11,600 in four years, after he has made his first million dollars. You figure that if you had the money today, you could invest it at 8 percent annual interest. What is the present value of your friend’s future gift? 3. In four years, you would like to buy a small cabin in the mountains. You estimate that the property will cost you $68,500 when you are ready to buy. How much money would you need to invest each year in an account bearing interest at the rate of 4 percent per year in order to accumulate the $68,500 purchase price? 4. You have estimated that your educational expenses…

Marian Plunket owns her own business and is considering an investment. If she undertakes the​ investment, it will pay $4,880 at the end of each of the next 3 years. The opportunity requires an initial investment of $1,220 plus an additional investment at the end of the second year of $6,100. What is the NPV of this opportunity if the interest rate is 1.8% per​ year? Should Marian take​ it? (yes or no)

Mira has saves $ 25000 over the years and she has the option of investing it in either of the 2 investment plans. Investment A offers 12 percent compounded monthly    Investment B pays 13 percent interest compounded semiannually. What would be the difference between the future values of the 2 investments if Mira investment horizon is 7 years    a. 2703.78 b. 4204.52 c. 1152.34 d. 3577.87 e. 3250.  22

Marco is 45 years old and plans to retire at age 66. He wants you to assume he will be retired for 18 years before he dies. Assume Marco needs $50,504 at the beginning of the first year of retirement. Use an investment return of 7 percent and an inflation assumption of 3 percent. What amount of money will he need to have saved at the beginning of retirement? (Round any interest rate calculations to 4 decimal places e.g. .0125 for 1.25% and round the final answer to 2 decimal places)

Jacob wishes to borrow $80,000 from his bank, J.P. Morgan, in order to expand his business. J. P. Morgan agrees to lend him the money over a 5-year term at an APR of 8% and will accept either annual, quarterly, or monthly payments with no change in the quoted APR. Calculate the periodic payment under each alternative and compare the total amount paid each year under each option. Which period should Jacob choose and why? Show your calculations using a formula.

Samantha wants to be able to withdraw $480 at the end of each month for two years while she travels, starting three years from now. If she invests $8,700 now to earn 7.52% compounded monthly until she begins to travel, what monthly compounded nominal rate of interest must she earn after she starts to travel? Do not include the dollar sign in your answers. Do not include the comma usually used to denote thousands. Do not include the percent sign in your answers. a.) What is the future value of the investment after the deferral period? b.) What is the nominal annual rate of interest compounded monthly? (Correct to 4 decimal places.) c.) What is the effective annual rate of interest? (Correct to 4 decimal places.)