Question: Please answer the question with parts A,B and C Question 1 (1 point) You are looking to buy a Bank CD (certificate of deposit) which
Please answer the question with parts A,B and C


Question 1 (1 point) You are looking to buy a Bank CD (certificate of deposit) which has a guaranteed interest rate of 0.05. The CD has a term of 10 years. If you put $1,000 in the CD today, how much will you have in 10 years when it matures? Round to the nearest cent. Your Answer: Answer You have a business idea that requires an investment of $5,000. It won't make any money immediately, but you expect that you can sell it in 5 years for $7,000. Your personal discount rate is 0.04. What's the NPV of your business idea? Round to the nearest dollar. Your Answer: Answer How much would you be willing to pay for an annuity that pays $175 every six months for 4 years if the appropriate discount rate is 0.05? Round to the nearest dollar. Your
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