Question: it will you wa Editing U ev AA, .. E EYES A Styles Find 04.(25 marks) a) with your promotion as a Manager Operation in

 it will you wa Editing U ev AA, .. E EYES

it will you wa Editing U ev AA, .. E EYES A Styles Find 04.(25 marks) a) with your promotion as a Manager Operation in Trans Corporation, you are committed to owning a $190,000 Ferrari. If you believe your mutual fund can achieve a 12% annual rate of return and you want to buy the car in nine years on the day you turn 35. how much must you invest today? b) Ford Motors appointed as assistant manager and they've offered you two different salary arrangements. You can have $75,000 per year for the next two years, or you can have $64,000 per year for the next two years, along with a $20,000 signing bonus today. The bonus is paid immediately, and the salary is paid at the end of each month.If the interest rate is 10% compounded monthly, what is the PV for both the options? Which option do you prefer? c) You are looking at an investment that has an effective annual rate of 14.50%, a. What is the effective semiannual return? b. What is the effective quarterly return? c. What is the effective monthly return? E B 0 P

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