**
Fill This Form To Receive Instant Help**

Homework answers / question archive / 1

1.You deposit $20 per week into an account earning interest compounded weekly. If in four years you have accumulated $5,250 what annual interest rate are you receiving? Round to 2 decimal places. %

2. Much to your surprise, you were selected to appear on the TV show "The Price is Right." As a result of your prowess in identifying how many rolls of toilet paper a typical American family keeps on hand, you win the opportunity to choose one of the following: $1,700 today, $10,000 in 15 years, or $31,000 in 28 years. Assuming that you can earn 7 percent on your money, which should you choose? If you are offered $10,000 in 15 years and you can earn 7 percent on your money, what is the present value of $10,000? $ 3624.46 (Round to the nearest cent.) If you are offered $31,000 in 28 years and you can earn 7 percent on your money, what is the present value of $31,000? $ 4662.47 (Round to the nearest cent.) Which offer should you choose? (Select the best choice below.) O A. Choose $1,700.00 today because its present value is the highest O B. Choose $10,000.00 in 15 years because its present value is the highest OC. Choose $31,000.00 in 28 years because its present value is the highest.

3.Flora? Co.'s bonds, maturing in 14 ?years, pay 14 percent interest on a $1,000 face value.? However, interest is paid semiannually. If your required rate of return is 6 ?percent, what is the value of the? bond? How would your answer change if the interest were paid? annually?

Already member? Sign In