QUESTION 2 What's the PV (present value) of $2,000 discounted back 5 years? Using interest rate = 6% and compounded monthly (hint: monthly interest rate = 0.5%)? $1,482.74 O $1,509.03 O $1,365.38 $1,693.80
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- What is the present discounted value of $400 to be received one year from now plus $500 to be received two years from now if the interest rate is 4%? А. $751.84 $860.05 C. $899.04 D. $912.89 B.Q9 A deposit of $720 earns interest rates of 8 percent in the first year and 11 percent in the second year. What would be the second year future value? (Round your answer to 2 decimal places.) FUTURE VALUE?QUESTION 3 1. The amount of R11 500 000 discounted over three years at an interest rate (discount rate) of 10% per year is: A) R8 640 120 B) R15 306 500 C) R28 598 797 D) None of the above 2. How long will it take to double your money at an interest rate of 17.34% per year if the interest is compounded annually: A) 4.12 years B) 4.33 years C) 5.12 years D) None of the above 3. If a lump sum of R60 000 left in the bank for five years with monthly deposits of R2 500 has grown to R266 266 and interest is compounded monthly, what annual rate of interest has the bank been paying? A) 7.13% B) 7.25% C) 386.90% D) None of the above 4. If you invest R100 000 today at 12.5% interest per annum for 42 years, you will have R at the beginning of the thirty-second year? A) R3 758 173 B) R3 888 313 C) R14 073 624 D) None of the above 5. Shaun wants to invest R10 000 today and make monthly deposits of R1 500. The market interest rate is 10% per year and is compounded six monthly. Shaun would like to…
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- Choose the best answer Compute the future value in year 5 of a $2,000 deposit in year 1 and another $2,500 deposit at the end of year 3 using a 6% interest rate. a. $5,333.95 b. $5,653.99 c. $5,850.00 d. $6,022.02What amount of interest will be charged on $20 000 in 1 month for a simple interest of 5.99%? Question 20 options: A) $119.80 B) $1198 C) $99.83 D) $9.98 E) $0Question 5 Suppose you deposit $2,000 at the end of each quarter for five years at an interest rate (APR) of 8% compounded monthly. Which of the following formulas will determine the present worth value of your savings at the end of year 5? P = $2000(P/A,8%,5) P = $2000(P/A,2.01%,20) P = $2000(P/A,8%,20) OP= $2000(P/A,2.01%,5) Question 6 How many years will it take an investment to triple if the interest rate is 6% compounded continuously? (round up your answer to the nearest integer) 20 22 21 19
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