Q1:If you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in your account after 5 years   Q2:What is the present value of a security that will pay $5,000 in 20 years if securities of equal risk pay 7% annually   Q3:Your parents will retire in 18 years. They currently have $250,000, and they think they will need $1 million at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds?   Q4:If you deposit money today in an account that pays 6.5% annual interest, how long  will it take to double your money?

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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  • Q1:If you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in your account after 5 years
  •  
  • Q2:What is the present value of a security that will pay $5,000 in 20 years if securities of equal risk pay 7% annually
  •  
  • Q3:Your parents will retire in 18 years. They currently have $250,000, and they think they will need $1 million at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds?
  •  
  • Q4:If you deposit money today in an account that pays 6.5% annual interest, how long  will it take to double your money?

 

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