What is the value of investment at the end of year thirty

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Problem 1: Martha receives $100 on the first of each month. Stewart receives $100 on the last day of each month. Both Martha and Stewart will receive payments for five years. The discount rate is 8 percent, compounded monthly. What is the difference in the present value of these two sets of payments?

A. $32.88

B. $34.29

C. $92.60

D. $108.00

E. $112.50

Problem 2: An investment will pay $6,300 every three years for the next 30 years. The annual rate of interest is 11.4 percent. What is the value of this investment at the end of Year 30?

A. $330,590.34

B. $396,222.20

C. $1,206,504.11

D. $1,353,997.81

E. $403,576.58

Reference no: EM132958135

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