1. Jane Morrison is planning to invest $25,000 today in a mutual fund that provides a yield...
Question:
1. Jane Morrison is planning to invest $25,000 today in a mutual fund that provides a yield of 8% interest compounded annually. What will be the value of the investment in ten years? 2. Ramn Rivera is investing $7,500 in a CD from a bank that pays 6% interest annual compound. How much will he have earned at the end of five years? 3. Mara Lebrn is considering an investment that pays 7.6% interest compounded annually. How much would she have to invest today if she expects this investment to bring her $25,000 in six years? 4. Elizabeth Terrier wants to accumulate $12,000 after 12 years. If the interest rate compounded annually that your savings account pays is 9.25%, how much money would you have to deposit into her account today to achieve her goal? 5. Carolina Carlo needs to decide if she will accept a $17,000 bonus today or wait two years and receive $20,100. The compound annual interest rate at which she could invest is 6%. What should Caroline do? 6. How much more would you earn in three years if you invest $10,000 at a compound interest rate 5.75% per year, instead of at a simple interest rate of 5.75%? (5 points) 7. What would be the compound annual interest rate you would need to double your investment of $1,000 in three years? 8. If your bank pays you 5% annual interest, compounded monthly, how much would you have in ten years if you invest $1,000 today? 9. How much would you have to deposit today in a bank account that pays 9.25% interest? annually, compounded quarterly, if you expect to have $20,000 at the end of five years? 10. Suppose you invested $2,500 in the business that a friend of yours opened and that in three years this friend returned you $3,700. What was the return on your investment in your business? dude?