1-What annual interest rate, compounded semi-annually for 12 years, will be needed for an investment of $27,000 to grow to $80,000? 

2-Bambolin Corp wants to know how much should be the maximum value to pay for an investment in which it has projected that it could receive about $16,000 at the end of each of the next 7 1/2 years. The required return is 12% per year, compounded semi-annually. 

3-Nemesios Corp. is evaluating an investment opportunity in which it could receive the following cash flows shown below that will be received at the end of the next 5 years on an investment. If the corporation must generate a minimum return of 6% compounded annually on their investment, what should be the most they should pay for the investment?

End of the year	Cash flows
1	$143,000
2	140,000
3	135,000
4	130,000
5	120,000

4-If Sofía, who is 34 years old, deposits $25,000 in a savings account that pays 12% annual interest, compounded quarterly, how much will she have in the account at the end of her 40th birthday? 

5-Let's assume that one of your dreams is to invest in buying an apartment in 5 years from now; You estimate that the down payment at that time will be $35,000. How much do you need to deposit at the end of each year in the next 4 years to accumulate the $35,000 if you can earn 8% per year compounded semi-annually on those deposits? 

Answer rating: 100% (QA)

We can use the formula for compound interest to solve for the interest rate 80000 27000 1 r2212 8000... View the full answer