Alpha Geek

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    Polytechnic State University Sanluis
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    Polytechnic State University
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Category > Accounting Posted 18 Jun 2017 My Price 6.00

How much will you have at the end of 20 years if you invest $100 today at 15% annually compounded?

1. How much will you have at the end of 20 years if you invest $100 today at 15% annually compounded? How much will you have if you invest at 15% continuously compounded?

2. You have just read an advertisement stating, “Pay us $100 a year for 10 years and we will pay you $100 a year thereafter in perpetuity.” If this is a fair deal, what is the rate of interest?

3. Which would you prefer?

a. An investment paying interest of 12% compounded annually.

b. An investment paying interest of 11.7% compounded semiannually.

 

c. An investment paying 11.5% compounded continuously. Work out the value of each of these investments after 1, 5, and 20 years.

Answers

Alpha Geek
(8)
Status NEW Posted 18 Jun 2017 06:06 AM My Price 6.00

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Attachments

file 1497768093-1662078_1_636332853082496269_SD.xlsx preview (61 words )
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