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Analyze the results obtained in the previous sections

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1. You have $ 1,500 to invest today at 7% interest compounded for 3 years.

A. Calculate how much you will have accumulated in the account at the end of 3 years if the interest is compounded annually, semi-annually and monthly.

b. Compare your results and explain where you received the highest interest benefit and why.

2. Answer each of the following questions:

A. What one-time investment made today, earning 12% annual interest, will be worth $ 6,000 at the end of 6 years?

b. What is the present value of the $ 6,000 that will be received at the end of 6 years if the discount rate is 12%?

c. What is the highest amount you would pay today in exchange for the promise to pay $ 6,000 at the end of the 6 years if your opportunity cost is 12%?

d. Compare and analyze the results obtained in the previous sections.

3. If the price of Coca Cola (KO) on the Yahoo.com page reads like this as of 12/4/2013:

A. What was the closing price of the stock for the previous day?

b. What is the current price of the stock?

Reference no: EM133075195

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