Investment Project Assignment | Homework For You
June 4th, 2020
If you need $200,000 for your retirement after 20 years, how much do you have to save every year if the annual rate is 10%? ‘
7.An investment project will generate $200, $250, and $300 in the future year 1, year 2 and year 3 respectively. How much is this project worth to you, when the interest rate is 10%?
8.Loan A provides an annual rate of 3.125% but compounds the rate monthly. Loan B provides an annual rate of 3.15% with no compounding.
10 | Loan A provides an annual rate of 3.125% but compounds the rate monthly. |
Loan B provides an annual rate of 3.15% with no compounding. | |
Which loan do you prefer when borrowing money? Please calculate the effective rates. |
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