Explain how much would you need to invest

Assignment Help Business Management

Reference no: EM1350018

You have your choice of two investment accounts. Investment A is a 5-year annuity that features end-of-month $2,500 payments and has an interest rate of 11.5 percent compounded monthly. Investment B is a 10.5 percent continuously compounded lump sum investment, also good for five years. How much would you need to invest in B today for it to be worth as much as investment A five years from now?

Reference no: EM1350018

Questions Cloud

Maximum speedup-achieved by pipeline over non-pipelined unit : Non-pipelined system takes 200ns to process task. Determine the maximum speedup that could be achieved with pipeline unit over the non-pipelined unit?

Determine the annual loan payment : Liz Rogers just closed a $10,000 business loan that is to be repaid in three equal, yearly, end-of-year payments. The interest rate on the loan is 13 percent.

Solve discion making question : Susan Crossing buy a used Ford Focus for $8,000. Since purchasing car, she has spent the following funds on parts and labor:

Percentage markups on cost : What percentage markups on selling price are equivalent to the following percentage markups on cost: 33 1/3, 20, 40, and 50? Discuss importance.

Explain how much would you need to invest : Explain How much would you need to invest in B today for it to be worth as much as investment A five years from now

Illustrate what will be the cumulative effects : Illustrate what will be the cumulative effects including the multiplier for each of the above three policy choices.

Return on investment components : Return On Investment measurement issues.. Green Company has prepared the following information for three of its divisions:

Explain a recent experience or observed act of prejudice : Explain a recent experience or observed act of prejudice. How would you have handled the situation differently?

Compute change in the level of real gdp demanded for each : Compute the change in the level of real GDP demanded for each of the following values of the MPC. Then, calculate the change if the government, instead of reducing its purchases, increased autonomous net taxes by $10 billion.

User Account

All Pages