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- A Question 1 Suppose you are offered an investment that will allow you to triple your money in 8 years. What is the implied rate of interest? Retake question O 14.72 percent O 9.26 percent Not enough information 11.61 percent 8.50 percent[CLO-5] Determine the value of X for these two investment alternatives to be equivalent at an interest rate of i= 15% per year O 499.77 O 502.25 1,700 2X 1,000 O 501.78 O 489.77 1,000 pill! T 10 15 10 End of Year End of Year 5,000nt question Q1. Find the present value of 30 annual payments of $2,000 per annum where the first payment is made 14 years from now. So there are 30 annual payments from t=14 to t=43 inclusive. The discount rate is 5% pa. The present value of these payments is: Question 8Select one: a. $4,908.18 b. $16,304.68 c. $21,212.85 d. $30,282.15 e. $30,744.9
- Question 3 What is the future worth in year 10 of $5,000 at n 0, $10,000 at n 3 years, and $8,000 at n=5 years if the interest rate is 12% per year? A. $24,157 B. $51,735 C. $62,540 D. None of theseQuestion 33 How much is $7.000,000 now equivalent to in sevent years from now at an interest rate of 7%? O a, $11,664,489 O b. 10,504,900 O c. $4,664.489 O d. $49,000,000Determine the future value of the following single amounts: Invested Amount Interest Rate No. of Periods1. $ 15,000 6% 122. 20,000 8 103. 30,000 12 204. 50,000 4 12
- 4.4 Calculating Interest Rates Solve for the unknown interest rate in each of the following: Present Value Years Interest Rate Future Value $ 189 4 $287 410 8 887 51,700 14 152,184 21,400 27 538,600B. How long wil the given principal P take to reach the given maturity value A at the given simple interest rate r? 6. P = P120,000; A = P121, 500; r = 1.15% 7. P = P16, 000; A = P16, 700; r = 6.2% 8. P = P758, 000; A = P760, 000; = 3.4% 9. P = P53, 500; A = P54, 000; = 5.5% 10. P = P789, 000; A = P790, 000; r = 0.9%Question 14.05 Consider two annuities that have the same yield and make annual payments. The first annuity is a level n-year annuity-due, and its Macaulay duration is 3. The second annuity is a level n-year annuity-immediate, and its Macaulay duration is X. E 4.50 Calculate X. A 3.00 B 3.25 C 3.50 D 4.00
- Determine the present value of the following single amounts: Future Amount Interest Rate No. of Periods1. $ 20,000 7% 102. 14,000 8 123. 25,000 12 204. 40,000 10 8At what interest rate will th given principal P earn the given simple interest lin the given term f? 11. P = P175, 000; = 6,500 1 = 5- years 12. P = P50, 000; | = P2, 0; t = 8 mos. 13. P = P180, 000; = P3, 500; 1 = 15 mos. 14. P = P320, 000; | = P7, 000; = 18 mos. 15. P = P2, 050, 00; = P5, 400; † = 2.8 yearsQuestion 7 Consider the two investments shown in the table. Find the present value of each at Year 0 assuming an interest rate of 5%. What is the percentage difference in the present values (with Investment 1 as the base of the percentage)? Year 0 1 2 3 Investment #1 Investment #2 $0 $100. $100 $1,100 $0 $100 $1,100 $0