You deposited $1,000 in a savings account that pays 8 percent interest, compounded quarterly, planning to 1. use it finish your last Eighteen months later, you decide to go to the Rocky Mountains to to year in college. become a ski continue in school, instructor rather than so you close out How much money will you your account. receive? a. $1,171 b $1,126 $1,082 d. $1,163 c. e. $1,008

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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TIME VALUE OF MONEY
You deposited $1,000 in a savings
that pays 8 percent interest,
compounded quarterly, planning to
1.
account
use
it
to
finish
your
last
year
in
college.
decide to go to the Rocky Mountains to
Eighteen months later, you
become
a
ski
instructor
rather
than
continue in school,
you close out
How much money willl you
so
your account.
receive?
$1,171
$1,126
$1,082
$1,163
e. $1,008
a.
C.
d.
2.
A real estate investment has the
following expected cash flows:
Year
Cash Flows
1
$10,000
25,000
50,000
35,000
3.
4.
The
discount
rate
is
8.
percent.
What
is
the
investment's
present
value?
$103,799
$ 96,110
$ 95,353
$120,000
$ 77,592
a.
b.
C.
d.
e.
Transcribed Image Text:TIME VALUE OF MONEY You deposited $1,000 in a savings that pays 8 percent interest, compounded quarterly, planning to 1. account use it to finish your last year in college. decide to go to the Rocky Mountains to Eighteen months later, you become a ski instructor rather than continue in school, you close out How much money willl you so your account. receive? $1,171 $1,126 $1,082 $1,163 e. $1,008 a. C. d. 2. A real estate investment has the following expected cash flows: Year Cash Flows 1 $10,000 25,000 50,000 35,000 3. 4. The discount rate is 8. percent. What is the investment's present value? $103,799 $ 96,110 $ 95,353 $120,000 $ 77,592 a. b. C. d. e.
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