You expect to receive GHS10,000 as a bonus after 5 years on the job. You have calculated the present value of this bonus to be GHS8000. What discount rate did you use in your calculation? (5 marks)b. Suppose you deposit GHS350 at the beginning of each month in an account that pays 6% annual interest, compounded monthly. Find the total amount in this account at the end of 25 months. (5 marks)c. You have borrowed GHS 10,000 from a bank with the understanding that you will pay it off with a lump sum of GHS12,000 after 2 years. Find the annual rate of interest on this loan. (5 marks)d. A bank account pays 5.5% annual interest, compounded monthly, How long will it take the money to double in this account? (5 marks)
You expect to receive GHS10,000 as a bonus after 5 years on the job. You have calculated the present value of this bonus to be GHS8000. What discount rate did you use in your calculation? (5 marks)b. Suppose you deposit GHS350 at the beginning of each month in an account that pays 6% annual interest, compounded monthly. Find the total amount in this account at the end of 25 months. (5 marks)c. You have borrowed GHS 10,000 from a bank with the understanding that you will pay it off with a lump sum of GHS12,000 after 2 years. Find the annual rate of interest on this loan. (5 marks)d. A bank account pays 5.5% annual interest, compounded monthly, How long will it take the money to double in this account? (5 marks)
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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Transcribed Image Text:You expect to receive GHS10,000 as a bonus after 5 years on the job. You
have calculated the present value of this bonus to be GHS8000. What
discount rate did you use in your calculation? (5 marks)b. Suppose you
deposit GHS350 at the beginning of each month in an account that pays
6% annual interest, compounded monthly. Find the total amount in this
account at the end of 25 months. (5 marks)c. You have borrowed GHS
10,000 from a bank with the understanding that you will pay it off with a
lump sum of GHS12,000 after 2 years. Find the annual rate of interest on
this loan. (5 marks)d. A bank account pays 5.5% annual interest,
compounded monthly, How long will it take the money to double in this
account? (5 marks)
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