You can purchase an annuity that pays $1000 per year for 5 years. The first...
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Finance
You can purchase an annuity that pays $1000 per year for 5 years. The first payment will be received exactly one year from today. If the interest rate is 8%, compounded quarterly, what is the most you would be willing to pay for the annuity (rounded to the next $)?
Question 11 options:
1)
$4,088
2)
$3,791
3)
$3,967
4)
$4,713
5)
$6,105
A quarterly compounded investment of $10,000 is expected to grow to $20,000 in 7 years. What is the underlying effective annual interest rate?
Question 8 options:
1)
100%
2)
10.41%
3)
10.03%
4)
2.60%
5)
2.51%
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