Consider the followingalternatives: i. $120 received in one year ii. $220 received in five years iii. $350 received in 10 years a. Rank the alternatives from most valuable to least valuable if the interest rate is 7% per year. b. What is your ranking if the interest rate isonly 2% per year? c. What is your ranking if the interest rate is 14% per year?
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Consider the followingalternatives:
i. $120 received in one year
ii. $220 received in five years
iii. $350 received in 10 years
a. Rank the alternatives from most valuable to least valuable if the interest rate is 7% per year.
b. What is your ranking if the interest rate isonly 2% per year?
c. What is your ranking if the interest rate is 14% per year?
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- Consider the following alternatives: i. $100 received in one year ii. $230 received in 5 years iii. $320 received in 10 years a. Rank the alternatives from most valuable to least valuable if the interest rate is 10% per year. b. What is your ranking if the interest rate is only 4% per year? c. What is your ranking if the interest rate is 20% per year? ... a. Rank the alternatives from most valuable to least valuable if the interest rate is 10% per year. (Select the best choice below.) A. The ranking of the projects is: option i > option iii > option ii. B. The ranking of the projects is: option iii > option ii > option i. C. The ranking of the projects is: option ii > option i> option iii D. The ranking of the projects is: option ii > option iii > option i. b. What is your ranking if the interest rate is only 4% per year? (Select the best choice below.) A. The ranking of the projects is: option i > option ii > option ii. B. The ranking of the projects is: option iii > option ii >…Consider the following alternatives: i. $100 received in one year ii. $220 received in 5 years iii. $330 received in 10 years a. Rank the alternatives from most valuable to least valuable if the interest rate is 7% per year. b. What is your ranking if the interest rate is only 6% per year? c. What is your ranking if the interest rate is 19% per year? a. Rank the alternatives from most valuable to least valuable if the interest rate is 7% per year. First, calculate the present value (PV) of each alternative: The PV of $100 received in one year if the interest rate is 7% per year is $ (Round to the nearest cent.)For the following exercise, use the compound interest formula, A(t) = P 1 + r n nt , where money is measured in dollars.After a certain number of years, the value of an investment account is represented by the expression 10,950 1 + 0.03 2 24 . How many years had the account been accumulating interest? yr
- Suppose the interest rate is3.6%. a. Having $650 today is equivalent to having what amount in one year? b. Having $650 in one year is equivalent to having what amount today? c. Which would you prefer, $650 today or $650 in one year? Does your answer depend on when you need the money? Why or why not? a. Having $650 today is equivalent to having what amount in one year? It is equivalent to $____. (Round to the nearest cent.)ou can assume that all payments are made at the beginning of the period and use "1" for the "type" argument in the formula. A. Suppose you invest $ 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded annually? B B. Suppose you invest $ 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded quarterly? 4 5 6 27 28 29 C. Suppose you invest St $ 570 monthly. What is the future value of the investment in 29 years, if interest at 5% is compounded monthly? Question 1 Question 2 + Ready Accessibility: Investigate MAR 17 A W +Assume that at the beginning of the year, you purchase an investment for $6,300 that pays $130 annual income. Also assume the investment's value has increased to $6,900 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places. Rate of return % b. Is the rate of return a positive or a negative number? Positive Negative
- Assume that at the beginning of the year, you purchase an investment for $7,200 that pays $100 annual income. Also assume the investment's value has decreased to $6,800 by the end of the year. (a) What is the rate of return for this investment? (Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places.) Rate of return % (b) Is the rate of return a positive or negative number? Positive O NegativeSuppose that you have an investment that earns 0% in the first year, but 20.7% in the second year. What rate of interest, compounded annually, would yield the same return after two years? (Answer in percentage)Compute the number of years (t) if future value (FV) = $5575, present value (FV) = $1812, and interest rate (r) = 9.1%,
- Assume that at the beginning of the year, you purchase an investment for $6,500 that pays $95 annual income. Also assume the investment's value has increased to $7,050 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places.Which of the following statements is true? Group of answer choices If interest is 13% compounded annually, $1300 due one year from today is equivalent to $1,000 today. The higher the discount rate, the higher the present value. The process of accumulating interest on interest is referred to as discounting. If interest is 4% compounded annually, $1040 due one year from today is equivalent to $1000 today.The current amount A of a principal P invested in a savings account paying an annual interest rate r is given by A = P(1+r/n)^(rt) where n is the number of times per year the interest is compounded. For continuous compounding, A = Pe^(rt). Suppose $10,000 is initially invested at 2.5 percent (r = 0.025). a. Plot A versus t for 0 ≤ t ≤ 20 years for four cases: continuous compounding, annual compounding (n = 1), quarterly compounding (n = 4), and monthly compounding (n = 12). Show all four cases on the same subplot and label each curve. On a second subplot, plot the difference between the amount obtained from continuous compounding and the other three cases. b. Redo part a, but plot A versus t on log-log and semilog plots. Which plot gives a straight line?