You purchase an investment which will pay you $750,000 in 20 years from today. Using a...

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You purchase an investment which will pay you $750,000 in 20 years from today. Using a discount rate of 7.50%, how much must you pay for this investment using monthly compounding? (Round to the nearest whole dollar) Question An electric company agrees to receive $500 every 6 months for the next 5 years in return for services performed. If these payments are invested at an annual rate of 2.50%, how much will the firm have by the end of 5 years? (Round to the nearest whole dollar) You purchase an investment which will pay you $750,000 in 20 years from today. Using a discount rate of 7.50%, how much must you pay for this investment using monthly compounding? (Round to the nearest whole dollar) Question An electric company agrees to receive $500 every 6 months for the next 5 years in return for services performed. If these payments are invested at an annual rate of 2.50%, how much will the firm have by the end of 5 years? (Round to the nearest whole dollar)

Answer rating: 100% (QA)

1To calculate the present value of the investment with monthly compounding we can use the formula fo... View the full answer