Assignment 2 1. Suppose you invest $2,000 at 5.6% per year. How much would you have...

Assignment 2

1. Suppose you invest $2,000 at 5.6% per year. How much would you have in five years? (FV)

2. Suppose you need $10,000 in one year for the down payment on a new car. If you can earn 6% annually, how much do you need to invest today? (PV)

3. Suppose you are offered an investment that will allow you to double your money in 6 years. You have $20,000 to invest. What is the implied rate of interest? (r)

4. You want to purchase a new car, and you are willing to pay $20,000. If you can invest at 6% per year and you currently have $15,000, how long will it be before you have enough money to pay cash for the car? (t)

Expert Solution

jeff jeffy answered 1 year ago

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