Solution-What is the present value or amount that should be

What is the present value or amount that should be paid

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Q1. An investor expects to receive $10,600 at the end of three (3) years. If he expects to earn 6%, compounded annually, what is the present value or amount that should be paid for the investment today?

Q2. To save for your newborn son's college education, you will invest $100 at the end of each month for the next 18 years. The interest rate earned is 12 percent. What is the value of the 529 Plan upon the beginning of the first semester of college?

Q3. If you invest $10,000 at a yield of 10% interest, how much will you have in 10 years?

Q4. You are an individual looking to place funds into a commercial bank. Which of the following terms would create the highest future value on your investment? (Assuming all else equal)Group of answer choices:

a. Monthly

b. Annually

c. Semiannually

d. Quarterly

Q5. If an investment project has a positive net present value (NPV), then the internal rate of return is?

a. greater than the cost of capital.

b. less than the cost of capital.

c. equal to the cost of raising funds.

d. having no effect on cost

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What is the present value or amount that should be paid

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Reference no: EM132839174

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