Fifteen years ago, you deposited $12,500 into an investmentfund. Five years ago, you added an additional $20,000 to that account. Youearned 8%, compounded semi-annually, for the first ten years, and 6.5%,compounded annually, for the last five years. Required:a. What is the effective annual interest rate (EAR) you would get for yourinvestment in the first 10 years?b. How much money do you have in your account today?c. If you wish to have $85 000 now, how much should you have invested 15years ago?

Q: Your business associate who owes you $8000 offers to pay you either $6640 now or else to pay you 5…

A: Yearly installment (A) = $1600 n = 5 years r = 5.8% compounded continuously

Q: You have discovered an investment opportunity that earns a 3% rate of interest compounded…

A: Present value is the equivalent value of future money today that is going to be received in the…

Q: Suppose you have $1700 in your savings account at the end of a certain period of time. You invested…

A: Simple interest doesn't take compounding into consideration.

Q: Which of the following investments will have the highest future value atthe end of 10 years? Assume…

A: The future value is the value of assets assuming a growth rate. The time value of money states that…

Q: Find the accumulated value of an investment of $10,000 for 5 years at an interest rate of 4.5% if…

A: Future value is the expected value of current sum in the near future.

Q: Fifteen years ago deposited 12500 in to an investment fund.five years ago you added an additional…

A: a) The computation of effective annual rate for 10 year: Hence, the effective annual rate is 8.16%.

Q: Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an…

A: Calculation of effective annual rate (EAR): Answer: Effective annual rate (EAR) is 8.16%

Q: Fifteen years ago deposited 12500 in to an investment fund.five years ago you added an additional…

A: a) Computation:

Q: A person is considering entering into an agreement with an investment company to deposit $1000 into…

A: The FV of an investment refers to the combined worth of the cash flows of the investment at a…

Q: If $1,000.00 is invested in an account for 30 years. Find the value of the investment at the end of…

A: The conceptual formula used:

Q: Suppose you invest $3000 in a four-year certificate of deposit (CD) that pays 1.5% interest…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: 6.​If the current value of $1000 received five years from now is $680.50, what is the ​assumed…

A: Annual interest rate refers to the rate that is being charged by the lender by the borrower on the…

Q: please answer with details on how to do it. Thank you. If a one-time amount of $10,000 is invested…

A: Future amount in case of compounding can be calculated as: = Principal * ( 1 + rate) ^ number of…

Q: Twelve years ago, you deposited $25,500 into an investment fund. Five years ago, you added an…

A: Given information: Deposited an amount of $25,500 for 12 years Additional $15,000 added into…

Q: If you contribute $1000.00 into an RRSP every six months for fifteen years and interest on the…

A: GIVEN, pmt =$1000 NPER = 15 X 2 =30 RATE = 8%2=4% PV=0

Q: firm has decided to make an investment, an ordinary annuity of $10,000 per year for fifteen years.…

A: Future value FACTOR ANNUITY =(1+r)n - 1/r r=interest rate =4% Period =15 years

Q: If 32300 dollars is invested at an interest rate of 10 percent per year, compounded semiannually,…

A: The concept of time value of money will be applied here. As per the concept of time value of money…