How much will have at the end of ten years

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Problem 1: You invested $28,000 today in an endowment policy with a 6.8% return, compound annually. How much will you have at the end of ten (10) years?

 Problem 2: Genie intends to start a business five (5) years later. She estimated that she will need a starting capital of $200,000 by then. To prepare for it, she wants to place a fix sum in an investment now which will pay a return of 8% annually. How much do you think she needs to invest today to meet the required amount?

Problem 2: In a corporation form of business, there is a separation of ownership and management. As a result, agency problem may occur. Explain the concept of principal-agent problem and give one example to illustrate it

Reference no: EM132934535

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