BU111 Spring 2012 - Supplementary Questions

# The investment does not provide a return that is

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Unformatted text preview: in is not correct. The investment does not provide a return that is equal to or greater than that of the market interest rate. If you are unfamiliar with logarithmic functions or the process used above, please take a look at this tutorial: http://www.youtube.com/watch?v=mQTWzLpCcW0 Problem 10 Raising Marks. Raising Money. Raising Roofs. www.schoolsos.com Students Offering Support: Wilfrid Laurier University Problem 11 Option 1) Calculated Annually ( ( ( ) ) ) Option 2) Calculated Semi-Annually ( ) Problem 12 Present Value of Renting: ( ) ( ( ( ( ( ) ) )( ) )( ) ) PV of Mortgage: ( ( ) Therefore, the mortgage is the less costly alternative. Problem 13 a) \$120 payment every year for 5 years ( ) ( ) b) \$10 payment every month for 5 years ( ( ) ) The \$10 payment every month is worth more in 5 years. Raising Marks. Raising Money. Raising Roofs. www.schoolsos.com ) Students Offering Support: Wilfrid Laurier University Problem 14 ̅̅ ̅̅ ( ( ( ) )( ) Problem 15 ( ( ( ) ) ) Problem 16 ( ( ) ) Problem 17 ( ( ( ) ) ) You will be able to buy the car in approximately 36 years and 2 months. Problem 18 ( ) ( ) ( ) ( ) Raising Marks. Raising Money. Raising Roofs. www.schoolsos.com ) Students Offering Support: Wilfrid Laurier University Problem 19 ( ( ( ) ) ( ( ( ) ) ) ) Raising Marks. Raising Money. Raising Roofs. www.schoolsos.com...
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## This note was uploaded on 02/07/2014 for the course BU 111 taught by Professor Jessicastockie during the Fall '08 term at Wilfred Laurier University .

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