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Question 22 1 pts 9 years ago you deposited 1,861 into an account. Today that account has a balance of 15,771. If the account
Question 24 1 pts An investment offers to pay 6,002 to be received in 15 years. What is this worth if you require a 7% return

need 22,23,&24 please
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Answer #1

22.

Let r be the rate earned every quarter for 9*4 = 36 quarters

So, 1861*(1+r)^36 = 15771

r= 0.06116

So, interest rate earned per year = 0.06116 * 4 = 0.2446 or 24.46%

23. Effective Interest rate = (1+0.115/7)^7-1 = 0.120825 or 12.08%

24. Investment's worth = present value of payoffs = 6002/1.07^15 = 2175.40

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