a). You want to buy some bonds that will have a value of $1,000 at the end of 4 years. The bonds pay 7.50 percent interest, how much should you pay for them today? (If you solve this problem with algebra round intermediate calculations to 4 decimal places, in all cases round your final answer to the nearest penny.) Present value of bond $ _____________ b). You have just inherited $570,000. You plan to save this money and continue to live off the money that you are earning in your current job. If the $570,000 is everything that you have other than an old car and some beat-up furniture, and you can invest the money in a bond that pays 4.1 percent interest annually, how long will it be before you are a millionaire? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to two decimal places, e.g. 8.72%.) Number of years _________________
a).
You want to buy some bonds that will have a value of $1,000 at the end of 4 years. The bonds pay 7.50 percent interest, how much should you pay for them today? (If you solve this problem with algebra round intermediate calculations to 4 decimal places, in all cases round your final answer to the nearest penny.)
| $
_____________
|
b). You have just inherited $570,000. You plan to save this money and continue to live off the money that you are earning in your current job. If the $570,000 is everything that you have other than an old car and some beat-up furniture, and you can invest the money in a bond that pays 4.1 percent interest annually, how long will it be before you are a millionaire? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to two decimal places, e.g. 8.72%.)
| Number of years |
_________________
|
Step by step
Solved in 3 steps
