The Super Hulk Hydraulic press costs $115,000 cash only. The purchase will be made 2 years from now. A preferred CD account offers 9.5% APR compounded monthly. Consider the possible financing options: a) What single (Ilump-sum) deposit can be made to this CD account so that you can purchase the press in 2 years? b) How much total interest is earned from this single deposit? c) If the CD is used as a sinking fund (or savings annuity) with 24 monthly installments, how much is each installment?
The Super Hulk Hydraulic press costs $115,000 cash only. The purchase will be made 2 years from now. A preferred CD account offers 9.5% APR compounded monthly. Consider the possible financing options: a) What single (Ilump-sum) deposit can be made to this CD account so that you can purchase the press in 2 years? b) How much total interest is earned from this single deposit? c) If the CD is used as a sinking fund (or savings annuity) with 24 monthly installments, how much is each installment?
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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