Question

Question 24 (3 points) Which of the following investments would have the lowest present value? Assume that the effective annual rate for all investments is the same and is greater than zero. 1) Investment A pays $250 at the end of every year for the next 10 years (a total of 10 payments). 2) Investment B pays $125 at the end of every 6-month period for the next 10 years (a total of 20 payments). 3) Investment C pays $125 at the beginning of every 6-month period for the next 10 years (a total of 20 payments). 4) Investment D pays $2,500 at the end of 10 years (Gust one payment) 5) Investment E pays $250 at the beginning of every year for the next 10 years (a total of 10 payments). Question 25 (3 points) A couple decides to purchase a beach condominium in Hilton Head Island. South Carolina. The agreed purchase price will be $298,000. The couple will pay 20% down on the condo and finance the remaining balance with a 30-year mortgage. The terms of the mortgage are 4 APR (with monthly compounding) 80% The couple will inherit a trust fund exactiy ten years from the purchase of the house. Th fund is expected to be redeemed for $219.500 I balance on the condo at that point, what will be the money left in the trust after the payment? the couple will pay off the remaining Format $12.344 as 12344. Your Answer

Answer 1