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Unformatted text preview: first payment in 8 years, if you can earn 7%? $63,281.55 npv(7,0{0, 0, 0, 0, 0, 0, 0, 30, 30, 30, 30} 3. If you invest $5000 in an account that pays 7% compounded quarterly for 5 years, then move it to an account that pays 7.5% compounded monthly, how much will you have after 5 years at the new rate? Quarterly N=5 x 4 =20 I = 7% / 4 = 1.75% $7,073.89 quarterly after 5 years After next 5 years (monthly) : N=5x12 = 60 I = 7.5% / 12 =.625% PV=  7,073.89 FV = $10,280.44...
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 Fall '09
 Dr.Moon
 Finance, Corporate Finance

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