1. Indiana Jones finds an ancient Chinese bracelet that is worth $100,000 today. In one year, he finds a ring worn by King James that is worth $290,000. In five years, he finds a necklace that was a gift to Princess Katya that is worth $150,000. Each appreciates in value by 7.2% per year. What is the total value of the jewelry exactly 20 years from today? 2. Indiana Jones invests $57,000 in a financial asset that earns 6.1% annually. Jones wants to use that money as a down payment on a villa in Bermuda that he will purchase in 4 years. The villa will cost $600,000 and Jones will take out a 9 year loan at 4.6%. Compute the monthly payment on the loan.
1. Indiana Jones finds an ancient Chinese bracelet that is worth $100,000 today. In one year, he finds a ring worn by King James that is worth $290,000. In five years, he finds a necklace that was a gift to Princess Katya that is worth $150,000. Each appreciates in value by 7.2% per year. What is the total value of the jewelry exactly 20 years from today? 2. Indiana Jones invests $57,000 in a financial asset that earns 6.1% annually. Jones wants to use that money as a down payment on a villa in Bermuda that he will purchase in 4 years. The villa will cost $600,000 and Jones will take out a 9 year loan at 4.6%. Compute the monthly payment on the loan.
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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Transcribed Image Text:1. Indiana Jones finds an ancient Chinese bracelet that is worth $100,000 today. In one
year, he finds a ring worn by King James that is worth $290,000. In five years, he finds a
necklace that was a gift to Princess Katya that is worth $150,000. Each appreciates in
value by 7.2% per year. What is the total value of the jewelry exactly 20 years from
today?
2. Indiana Jones invests $57,000 in a financial asset that earns 6.1% annually. Jones wants
to use that money as a down payment on a villa in Bermuda that he will purchase in 4
years. The villa will cost $600,000 and Jones will take out a 9 year loan at 4.6%.
Compute the monthly payment on the loan.
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