100% solutions to Math Fundamentals for Capital Markets

If you invest $2,000 with a 4% interest rate compounded annually, how much will you have in ten years?

If you are going to receive $2,000 in six years from now, how much is that worth today, assuming 5% annual simple interest?

How much more interest will you earn from 3 years of annual compounding of 10% compared to 3 years of simple interest on an initial 100-dollar investment?

What’s the effective rate for investment with a 6% annual rate, compounded quarterly?

Which of the following statements indicates a nominal rate (APR) of 5% annually?

If you need $5,000 in 4 years’ time and your investment generate 6% interest per year, compounded semi-annually, how much do you need to put away today?

Which of the following best describes the annuity factor?

What’s the discount factor if you are going to receive $500 ten years from now with an 8% annual interest?

Calculate the NPV of the project based on the information below: Initial investment: $20,000 Cash flow generated each year: $5,000 Total period: 5 Years Discount rate: 6%

If a principal amount of $1,000 earns 6% per year compounded annually in the first 2 years and 3% in the last 2 years, how much will you have total at the end of year 4?