4. Project A requires an investment of 4000 today. The investment pays 2000 oneyear from today and 4000 two years from today. Project B requires an investmentof X two years from today. The investment pays 2000 today and 4000 one yearfrom today. The net present values of the two projects are equal at an annualeffective interest rate of 10%. Calculate X.

Answered: Image /qna-images/answer/9f9abbaa-50f3-469c-ab5c-2651d4e937ee.jpg

Answered: 4. Project A requires an investment of…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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if the rate of compound interest on a special account for the first, second and third year is 8%, 10% and 15% respectively, find the total value of a $12,000 investment in 3 years.
Q5) A project that will cost $50,000 today, $100,000 in two years from today and $150,000 in five years from today will yield net returns of $5,000 monthly for 10 years. If the cost of money is 9% compounded annually, find the NPV of the project. (16.2)
3. Suppose that there are two bank accounts, each earning 2% interest, compounded contin- uously. You invest $10 in one account and $5000 in the other. Write 2-3 sentences about how much time it will take each account to double in value.
Ex 1. Suppose you invest $404 in a pqr stock at the beginning of the trading day yesterday. The stock decreased 3.56% during the trading day yesterday and 2,43% today. How much money do you have in the pqr stock now? Use any Excel method and put your answer in cell D11. Ex 2. Suppose you deposit $154 in a CD account with the 3.84% APR interest rate. How much money will you have in that account after 16 years? Use any Excel method. Put your answer in cell D13.
A house costs $150,000. The terms of the sale are 10% down payment and the remainder to be paid in monthly payments over 10 years at an annual rate of 4.25% compounded monthly.When15000 X 10/100 = 15000 the balance = 15000 – 15000 = $135,000 (P). You decide to pay an extra $50.00 per period as you pay back the loan. By doing this, you will decrease the loan duration by approximately 117 periods. In addition to paying an extra $50.00 per period as you pay back the loan, you decide to make an exrra payment of $5000 at fifth period. By doing this, you will decrease the original loan duration by approximately how many periods?

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