Evaristo would like to invest N$ 12 500 a month at the beginning of each month at an interest rate of 12% compounded quarterly. a  how much will he have after 6 years b  how much interest does he earn on a quarterly basis 2. a. Complete the table below for an investment of N$ 25 000.00 in the bank for 5 years earning 8.5% compound interest p.a. for the specified frequency of compounding 1 mark for the formula, 2 marks for the final amount, 1 mark for the interest earned. Frequency formula amount at the end of the 5year interest earned Daily       half-yearly       quarterly       weekly       continously       3. supposed that you wish to maximize the sum X1 + X2 subject to the constraints X1 > 0; X1 + X2 ,<3; 2X1 +2X < 4 and -2X1 + X2 < 1 a.  Draw and shade the feasible region and show coordinates of corner points. b.  Find numbers X1 and X2 maximize the sum

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
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Evaristo would like to invest N$ 12 500 a month at the beginning of each month at an interest rate of 12% compounded quarterly.

a  how much will he have after 6 years

b  how much interest does he earn on a quarterly basis

2.

a. Complete the table below for an investment of N$ 25 000.00 in the bank for 5 years earning 8.5% compound interest p.a. for the specified frequency of compounding

1 mark for the formula, 2 marks for the final amount, 1 mark for the interest earned.

Frequency formula amount at the end of the 5year interest earned
Daily      
half-yearly      
quarterly      
weekly      
continously      

3.

supposed that you wish to maximize the sum X1 + X2 subject to the constraints X1 > 0; X1 + X2 ,<3; 2X1 +2X < 4 and -2X1 + X2 < 1

a.  Draw and shade the feasible region and show coordinates of corner points.

b.  Find numbers X1 and X2 maximize the sum.

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