Reference no: EM133152335
Questions -
Q1. USC Physicians aspire to eventually expand their operations to construct a rheumatology clinic at the end of 7 years.
a. If they want to calculate how much they will need to invest to have a future sum of $2,000,000, at 9% interest what is this amount?
b. if a similar rheumatology-related clinic investment would require an initial investment of $980,000, should USC Physicians invest?
Q2. USC Physicians wants to look at other investment options to grow its working capital budget.
a. If a bank presents them with a 6-year investment option of investing $1000 and receiving $2100 at the end of the length of the investment, what is that interest rate?
b. If a different financial institution offers them another investment option of investing $2000 over a 4-year period and receiving a future value of $3100, what is this interest rate?
c. Based purely on interest rates, from an interest growth compounding perspective which investment option would you pick?