Q12) If you deposit $15,000 at EOY 1, $10,000 at EOY 2, and $5,000 at EOY 3 into a savings account which earns an annual interest rate of 9% compounded continuously, how much will you have in your account at EOY 5? Göüöw $40,065 $33,900 $36,756 $40,586 $37,093
Q12) If you deposit $15,000 at EOY 1, $10,000 at EOY 2, and $5,000 at EOY 3 into a savings account which earns an annual interest rate of 9% compounded continuously, how much will you have in your account at EOY 5? Göüöw $40,065 $33,900 $36,756 $40,586 $37,093
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:D.
E.
Q12) If you deposit $15,000 at EOY 1, $10,000 at EOY 2,
and $5,000 at EOY 3 into a savings account which earns an
annual interest rate of 9% compounded continuously, how
much will you have in your account at EOY 5?
B.
C.
D.
E.
A.
B.
Q13) How much money do you need to deposit in a bank
account now so that you can withdraw $10,000 every 5
years forever if the interest rate is 5% per year, and the
first withdrawal is scheduled 5 years from now?
D.
E.
A.
B.
1.9370
5.3304
1.1706
Q14) An investment of $80,000 is expected to generate a
net annual income of $25,000 for 5 years. If the study
period is 20 years, and assuming this alternative will be
repeated over the study period, what is the present worth
of this investment if MARR is 11%?
D.
E.
$40,065
$33,900
$36,756
$40,586
$37,093
B.
C.
D.
$35,291
$45,291
$39,092
$195,458
$36,195
$3,354
$12,397
$26,712
Q15) An investment of $70,000 yields a net annual income
of $15,000 for 6 years. What is the internal rate of return
(IRR) for this investment?
$11,083
$13,418
9.61%
7.69%
11.54%
6.15%
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