1. If you deposit $1000 into an account at the end of each of the next five years, and the…

1. If you deposit $1000 into an account at the end of each of the next five years, and the account pays an annual interest rate of 6%, how much will be in the account after five years?

2. If you could earn 9% on similar-risk investments, what is the least you would accept at the end of a six-year period, given the following amounts and timing of your investment?

a. Invest $5000 as a lump sum today.

b. Invest $2000 at the end of each of the next five years.

c. Invest a lump sum of $3000 today and $1000 at the end of each of the next five years.

d. Invest $900 at the end of years 1, 3 and 5.

 

Q

 

Looking for a Similar Assignment? Hire our Top Uk Tutors while you enjoy your free time! All papers are written from scratch and are 100% Original. Try us today! Active Discount Code FREE15