Question

vin otel2 Binmolile 5. Assume ABC Company deposits $90.000 with First National Bank in an account earning interest at 6% per annum, compounded semi-annually. How much will ABC have in the account after five years if interest is reinvested? a. $120,953. b. $90,000. c. $117,000. d. $120,442. Lnsbut2 ma nsbie 6. Charlie Corp. is purchasing new equipment with a cash cost of $300,000 for an assembly line. The manufacturer has offered to accept $68,900 payment at the end of each of the next six years. How much interest will Charlie Corp. pay over the tertm of the loan?luM a. $68,900. b. $300,000. c. $413,400.inc Thno v odT000,000,12 Tot olil uoY tad seuod s bauol uoY d. $113,400. d bobivg od liw 000,002 gainisms orfT 0To mmcag rwob noioup E1zon odi owann of noitemolai gaiwollol odh sa Inotsl sd o dood woy s) i stat tstotmi gnimuee/ 9gegnom d sdt of ns ohom vidinom woY I Milner Company will invest $800,000 today. The investment will earm 6 % for 5 years, with no funds withdrawn. In 5 years, the amount in the investment fund is a. $800,000. b. $1,040,000. c. $1,070,584. d. $1,072,232 7 000 2 000 E2 Ethan has $240,000 to invest today at an annual interest rate of 4%. Approximately how 8. many years will it take before the investment grows to $486,000? a. 18 years b. 20 years. c. 16 years d. 11 years. Pearson Corporation makes an investment today (January 1, 2017). They will receive $15,000 every December 31st for the next six years (2017-2022). If Pearson wants to earn 12 % on the investment, what is the most they should invest on January 1, 2017 a. $61,671 b. $69,072 c. $130,060 d. $136,335 9.

Answer 1

47 95 Here date Principal 64 Pa 699,000 3%. Por hat year 5 year lo halt Yar = - time Griven Puput -+304 000 Rate = cy. Time = 5 Year Annat = PART 100 = 8,00,000 X 6XS 100 = # 10,40,000 option is correct Amunt * 90 * (1+2) * 43300 *( 109 +)" = $90,000 X (103) = $ 1,20,953 A option is right Answer Heuse. 06. Total = 4, 86,000 Principal = 2,40,000 Rate = 4 time - log (A/P)/u [lug (1to/u] Totax Amount paid = $(68,900 46) = 4, 13,400 Equipment coxt = 3,00,000 Interest = 4,13,400 - 3,000 = 1,13,400 Hey Doption is correct = 17.99 = 18 year correct option is