Question: 2. Using the present value and future value tables, a financial calculator, or a spreadsheet, answer the following questions. B. $13,000 is to be deposited
2. Using the present value and future value tables, a financial calculator, or a spreadsheet, answer the following questions.
B. $13,000 is to be deposited at the beginning of each semiannual period for the next nine years. What is the FV of this investment if 12% interest is compounded semiannually?
C. $7,000 is to be received at the end of each year for the next 8 years. What is the PV of this investment if 8% is compounded annually?
D. $7,000 is to be received at the beginning of each semiannual period for the next 8 years. What is the PV of this investment if 8% interest is compounded semiannually?
3. Bob Khan would like to invest in a $50,000 face value note payable. The note has a 10-year term and pays 9% annual interst, at the end of each year. Interest is compounded annually.
A. What would he pay for the note if he wanted the note to yield 9%?
B. What would he pay for the note if he wanted the note to yield 13%?
C. What would he pay for the note if he wanted the note to yield 17%?
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