This preview shows page 1. Sign up to view the full content.
Unformatted text preview: ur bank account, which pays annual interest of 7%,
compounded monthly. You are saving up to buy a brand new $150,000 Jaguar convertible. In
how many years will you have enough money to buy the car? Problem 18
Suzanne has identified a project with the following cash flows:
Calculate the present value of the cash flows if the discount rate is 8%. Raising Marks. Raising Money. Raising Roofs.
www.schoolsos.com Students Offering Support: Wilfrid Laurier University Problem 19
When you graduate, you plan on spending a year as a groupie for the band Nickleback. You
estimate the costs of touring with the band to be $2,000 per month. In order to live out your
dream, you decide to make weekly deposits into your savings account. The account earns 4%
interest, compounded semi-annually. You have 2 years exactly until your graduate. How much
will you have to save on a weekly basis in order to have enough to become a groupie? Raising Marks. Raising Money. Raising Roofs.
www.schoolsos.com Students Offering Support: Wilfrid Laurier University Solu...
View Full Document
- Fall '08