Autorola plans to invest 5,000 per year in equal end-of-the-year ...

[RRMR]

Autorola plans to invest 5,000 per year in equal end-of-the-year amounts at an interest rate of 6 compounded annually. How much will the firm have at the end of four years?
 
  What will be an ideal response?

Question 2

Interest rate parity theory states that the forward premium or discount should be equal and
  opposite in sign to the difference in the national interest rates for securities of the same maturity.
 
  Indicate whether the statement is true or false

[amandanbreshears]

Answer to Question 1

Answer: FV = PMT  = 5,000  = 21,873.08.

Answer to Question 2

TRUE