Author Question: Your aunt dies and leaves you $1M in her will, but it must stay in trust for 10 years. You want to ... (Read 58 times)

RRMR · **on:** Apr 25, 2021

Question 1

You want to have $55,230 at the end of seven years. How much do you have to invest today to accumulate that total if you can earn 14% compounded annually?
◦ $22,071.97
◦ $19,361.38
◦ $20,763.00
◦ $22,092.00
◦ $22,074.34

Question 2

Your aunt dies and leaves you $1M in her will, but it must stay in trust for 10 years. You want to spend it now, so you go to the Bank to borrow against the bequest. You offer the $1M to repay interest and principal at the end of ten years. The Bank wants to earn 5% on its loan, so how much will it offer you today?
◦ $613,913.25
◦ $617,283.95
◦ $675,564.17
◦ $558,394.78
◦ $1,000,000.00

nguyenhoanhat · **Reply #1 on:** Apr 25, 2021

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