1 principal of 150 is invested at 4 simple interest paid, Ask an Expert

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1. Principal of $150 is invested at 4% simple interest, paid annually, for 10 years. What is the rate of return? Show your work. b) Which option below would yield the greatest future value?

A. paying interest every 3 months

B. increasing the interest rate to 5%

2. Otis bought a $7500 corporate bond. The bond earns 3%, compounded monthly. After 2 years, the interest rate changed to 4.5%, compounded annually. Determine the value of Otis' investment after 8 years. Show your work.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92397132

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