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Question 16 You currently have $26,000 available for investment for a 20-ycar period. At what interest rate APR compounded monthly must you invest this amount in order for it to be worth $100,000 at maturity? a) 0.56% b) 5.67% c) 6.75% d) 10.12% Answer.

Question 16 You currently have $26,000 available for investment for a 20-ycar period. At what interest rate APR compounded monthly must you invest this amount in order for it to be worth $100,000 at maturity? a) 0.56% b) 5.67% c) 6.75% d) 10.12% Answer.

Essentials Of Investments
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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Question 16 You currently have $26,000 available for investment for a 20-year period. At what interest rate APR compounded monthly must you nvest this amount in order for it to be worth $100,000 at maturity? a) 0.56% b) 5.67% c) 6.75% d) 10.12% Answer. Question 17 You are consSidering investing in a startup project at a cost of S400,000. You expect the project to return S1,000,000 to you in 10 years. Given the risk of this project, your cost of capital is 14,5%. The NPV for this project is closest to: a) S88,681 b) S99,800 c) S109,388 d) S141,807
Transcribed Image Text:Question 16 You currently have $26,000 available for investment for a 20-year period. At what interest rate APR compounded monthly must you nvest this amount in order for it to be worth $100,000 at maturity? a) 0.56% b) 5.67% c) 6.75% d) 10.12% Answer. Question 17 You are consSidering investing in a startup project at a cost of S400,000. You expect the project to return S1,000,000 to you in 10 years. Given the risk of this project, your cost of capital is 14,5%. The NPV for this project is closest to: a) S88,681 b) S99,800 c) S109,388 d) S141,807
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