What is the compounded valueof this savings vehicle

Assignment Help Engineering Mathematics

Reference no: EM131505780

Question: 1. The amount of $7,000 is invested in a Certificate of Deposit (CD) and will be worth $16,000 in nine years. What is the continuously compounded nominal (annual) interest rate for this CD?

2. A mutual fund investment is expected to earn 11% per year for the next 25 years. If inflation will average 3% per year during this 25-year period of time, what is the compounded value (in today's dollars) of this savings vehicle when $10,000 is invested now?

Reference no: EM131505780

Questions Cloud

What is the present equivalent of a uniform series : A man deposited $10,000 in a savings account when his son was born. The nominal interest rate was 8% per year, compounded continuously.

What is project quality management : What is Scope Management of a Project? What does it consist of?What is Project Quality Management? What does it consist of?

Address possible issues surrounding next years forecasting : Discuss the impact that the Medicaid cuts will have on Krona's revenue. Address the possible issues surrounding next year's forecasting.

What is the amount of each payment : A person needs $18,000 immediately as a down payment on a new home. Suppose that she can borrow this money from her company credit union.

What is the compounded valueof this savings vehicle : The amount of $7,000 is invested in a Certificate of Deposit (CD) and will be worth $16,000 in nine years. What is the continuously compounded nominal.

Is this a good investment : Suppose that annual income from a rental property is expected to start at $1,300 per year and decrease at a uniform amount of $50 each year.

Evaluate the merits of the given criticism : Evaluate the merits of this criticism, indicating your agreement or disagreement with the criticism. Provide support for your position.

Solve given question according to the reuirement : Refer to the accompanying cash-flow diagram (see Figure), and solve for the unknown quantity in Parts (a) through (d) that makes the equivalent value of cash.

Evaluate managements role within a financial investment firm : Evaluate management's role within a financial investment firm for establishing proper risk management procedures for high-risk investments.

User Account

All Pages