John has received a gift of $5,000.He wants to invest this in the stock market for the next 10 years.If John achieves 9% return per year, what is the value of his savings in 10 years?

You are considering an investment in 20-year bonds issued by ABC Corp.What is the fair interest rate on this bond given the following?Real risk-free rate is 0.5%.Default risk premium is 1.0%.Liquidity risk premium is zero.Maturity risk premium is 1.75%.One-year T-bills are earning 0.75% according to the Wall Street Journal.

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Calculating the value of Johns savings after 10 years with a 9 annual return ... View the full answer