3. Calculate the amount of interest earned on $10,250 invested for 5 years at 8% compounded semi-annually. 4. (a) How many years will it take to have $5,800 if you invest $1,500 at 5% compounded monthly? (b) What effective annual interest rate would this be equivalent to?
3. Calculate the amount of interest earned on $10,250 invested for 5 years at 8% compounded semi-annually. 4. (a) How many years will it take to have $5,800 if you invest $1,500 at 5% compounded monthly? (b) What effective annual interest rate would this be equivalent to?
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....
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3. Calculate the amount of interest earned on $10,250 invested for 5 years at 8%
compounded semi-annually.
4. (a) How many years will it take to have $5,800 if you invest $1,500 at 5%
compounded monthly?
(b) What effective annual interest rate would this be equivalent to?
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4. (a) How many years will it take to have $5,800 if you invest $1,500 at 5%
compounded monthly?
(b) What effective annual interest rate would this be equivalent to?
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