Reference no: EM133075195
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?