Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Which of the following investments will have the highest
Group of answer choices
$1,100 invested at a quarterly interest rate of 3.25% for 10 years
$2,100 invested at an annual interest rate of 12% for 5 years
$2,100 invested at a quarterly interest rate of 3.25% for 5 years
$1,100 invested at an annual interest rate of 12% for 10 years
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- An investment opportunity promises to pay $5,500.00 per year forever starting ten years from today. Assuming the interest rate of 7%, what should I pay today for this investment? $47,737.65 $58,194.98 $42,956.71 $30,111.39arrow_forwardQuestion 1: Blue Bird is considering an investment of $230 000 with cash inflows of $95 000, $76 000, $71 000, $38 000 and $33 000 over the next five years respectively. Required: What is the net present value of this investment if the relevant discount rate is 12%?arrow_forwardIf the current rate of interest is 8%, then the present value of an investment that pays $1000 per year and lasts 20 years is closest to: Group of answer choices $18,519 $20,000 $45,716 $9,818arrow_forward
- Which of the given interest rates and compounding periods would provide the best investment? (a) 8 percent per year, compounded semiannually; (b) 8 percent per year, compounded quarterly; (c) 8 percent per year, compounded continuously. Your answer is (input a, b, or c)arrow_forwardnt Use the compound interest formulas A = P and A = Pert to solve the problem given. Round answers to the nearest cent. Find the accumulated value of an investment of $20,000 for 7 years at an interest rate of 4.5% if the money is a. compounded semiannually; b. compounded quarterly; c. compounded monthly; d. compounded continuously. a. What is the accumulated value if the money is compounded semiannually? (Round your answer to the nearest cent. Do not include the $ symbol in your answer.) b.What is the accumulated value if the money is compounded quarterly? (Round your answer to the nearest cent. Do not include the $ symbol in your answer.) c. What is the accumulated value if the money is compounded monthly? (Round your answer to the nearest cent. Do not include the $ symbol in your answer.) d. What is the accumulated value if the money is compounded continuously? (Round your answer to the nearest cent. Do not include the $ symbol in your answer.)arrow_forwardHelp me pleasearrow_forward
- Hiren Add explanationarrow_forwardCalculate, to the nearest cent, the future value FV (in dollars) of an investment of $10,000 at the stated interest rate after the stated amount of time. 1% per year, compounded annually, after 14 yearsarrow_forward18. Compute the future value of a $100 investment for the following combinations of rates and times:a) r = 6.3%, t = 10 yearsb) r = 6.3%, t = 20 yearsc) r = 4.3%, t = 10 yearsd) r = 4.3%, t = 20 yearsarrow_forward
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