Match the correct answer for the following questions v The present worth of $400 in year 1 and amounts increasing by $30 per year A. 31,050 through year 5 at an interest rate of 12% per year is closest to: B. $1,634 What is the present worth of $1,000 in year 1 and amounts increasing by 7% per year through year 10? Use an interest rate of 12% per year. v Saed deposits $5000 into an account that pays interest at a rate of 8% per year. The amount in the account after 10 years is closest to: v Ali wants to make a single deposit now so he will have enough money to purchase a car costing $50,000 five years from now. If the bank offers an interest of 10% per year, what amount Ali should deposit now. C. $10,795 D. $7,333
Match the correct answer for the following questions v The present worth of $400 in year 1 and amounts increasing by $30 per year A. 31,050 through year 5 at an interest rate of 12% per year is closest to: B. $1,634 What is the present worth of $1,000 in year 1 and amounts increasing by 7% per year through year 10? Use an interest rate of 12% per year. v Saed deposits $5000 into an account that pays interest at a rate of 8% per year. The amount in the account after 10 years is closest to: v Ali wants to make a single deposit now so he will have enough money to purchase a car costing $50,000 five years from now. If the bank offers an interest of 10% per year, what amount Ali should deposit now. C. $10,795 D. $7,333
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
Problem 1PS
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Transcribed Image Text:QUESTION 7
Match the correct answer for the following questions
v The present worth of $400 in year 1 and amounts increasing by $30 per year A. 31,050
through year 5 at an interest rate of 12% per year is closest to:
v What is the present worth of $1,000 in year 1 and amounts increasing by 7%
per year through year 10? Use an interest rate of 12% per year.
B. $1,634
C. $10,795
D. $7,333
v Saed deposits $5000 into an account that pays interest at a rate of 8% per
year. The amount in the account after 10 years is closest to:
v Ali wants to make a single deposit now so he will have enough money to
purchase a car costing $50,000 five years from now. If the bank offers an
interest of 10% per year, what amount Ali should deposit now.
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