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Please read all questions and instructions cautiously. Note that you only need to get into answers with regards to numbers and without any signs (including bucks, %, commas, etc . ). Enter most monetary answers to the nearest dollar (no decimal/cents) and interest rates towards the nearest about hundredth of the percent (two decimal places). Read the syllabus for cases. The items for each query are classified by parentheses in the beginning of the query, and the total points for the whole assignment add up to 100. Problem 1
(5 points) 50 dollars today will be worth MORE than 50 dollars tomorrow.
Your Answer| | Score| Justification
True| | 5. 00| Correct. You understand Time value of money. | Total| | 5. 00 / 5. 00|
We have presumed time value of money can be positive.
(5 points) $100 invested intended for 10 years for 12% interest is worth even more in FV terms than $200 put in for a decade at 4% interest. The Answer| | Score| Description
False| | 0. 00| Learn how to estimate FVs of simple one-shot cash flows. Intuitively, compounding should prefer the 1st option. | Total| | 0. 00 / a few. 00|
All about compounding.
Question three or more
(5 points) Megan desires to buy a designer handbag and plans to generate the money babysitting. Suppose the interest rate is usually 6% and she is ready to wait twelve months to purchase the bag. How much babysitting funds (to the closest whole dollar) will the lady need to gain today to get the handbag for $400 one year via now? (Enter just the number without the money sign or a comma) Solution for Query 3
Your Answer| | Score| Description
377| | 5. 00| Correct. You understand it has to be less than $400. | Total| | 5. 00 / 5. 00|
Simple PHOTO VOLTAIC calculation.
(10 points) Shaun has $1, 000 that he invests in a safe economic instrument likely to return 3% annually. Marge has 500 usd and buys a more high-risk venture that is expected to returning 7% annually. Who has even more after 20...