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1) Let us suppose, you deposit $1,493 in the bank for 17 years. Determine the amount you will have in bank at the ending of 17 years if interest of 7 % for first 10 years and interest of 9 % for remaining years? If you can triple your money in 9 years, determine the implied rate of interest.

2) Finehealth Pharmaceuticals is considering the drug project which costs $176,677 today and is expected to produce end-of-year annual cash flows of $13,721, everlastingly. Compute the discount rate would Finehealth be indifferent between accepting and rejecting project?

3) If you can double your money in 27 years, find implied annual rate of interest, given that compounded in quarterly? How much do you require to invest today in order to have $10,016 at the end of 13 years if you are certain to earn the interest at rate of 4%?

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  • Category:- Basic Finance
  • Reference No.:- M914082

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