QUESTION 1 i. You just put $1,000 in a bank account that pays 6 percent nominal annual interest, compounded monthly. How much will you have in your account after 3 years? ii. You are currently...

QUESTION 1<br>i.<br>You just put $1,000 in a bank account that pays 6 percent nominal annual interest, compounded monthly. How<br>much will you have in your account after 3 years?<br>ii.<br>You are currently investing your money in a bank account that has a nominal annual rate of 7 percent,<br>compounded monthly. How many years will it take for you to double your money?<br>iii.<br>A real estate investment has the following expected cash flows:<br>Cash Flows<br>$10,000<br>Year<br>1<br>25,000<br>3<br>50,000<br>35,000<br>The discount rate is 8 percent. What is the investment's present value?<br>

Extracted text: QUESTION 1 i. You just put $1,000 in a bank account that pays 6 percent nominal annual interest, compounded monthly. How much will you have in your account after 3 years? ii. You are currently investing your money in a bank account that has a nominal annual rate of 7 percent, compounded monthly. How many years will it take for you to double your money? iii. A real estate investment has the following expected cash flows: Cash Flows $10,000 Year 1 25,000 3 50,000 35,000 The discount rate is 8 percent. What is the investment's present value?

Jun 09, 2022

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QUESTION 1 i. You just put $1,000 in a bank account that pays 6 percent nominal annual interest, compounded monthly. How much will you have in your account after 3 years? ii. You are currently...

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