Question: PLEASE SHOW FORMULAS / HOW TO WORK IT OUT You want to go to grad school 3 years from now, and you can save $5,000

PLEASE SHOW FORMULAS / HOW TO WORK IT OUT

You want to go to grad school 3 years from now, and you can save $5,000 per year, beginning one year from today. You plan to deposit the funds in a mutual fund which you expect to return 9% per year. Under these conditions, how much will you have just after you make the 3rd deposit, 3 years from now? Ans: 16,390.50

Ken Williams Ventures' recently issued bonds that mature in 15 years. They have a par value of $1,000 and an annual coupon of 6%. If the current market interest rate is 8%, at what price should the bonds sell? Ans: 828.81

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