Description
Look at worksheet and complete ALL questions correctly! No plagiarism please
Need a financial expert
1. Suppose you make an investment of $3,750. This first year the investment returns 11%, the second year it returns 7.5%, and the third year in returns 9%. How much would this investment be worth, assuming no withdrawals are made? (3 points)
2. A business you inherited will pay you $25,000 per year for 25 years. You will receive the first payment today. Suppose the fair return on the business is 7.5%, how much should you ask for it if you decide to sell the business? (3 points)
3. Suppose you received an offer in the mail to sign up for a new credit card with no annual free. The offers states that you will be charged an annual percentage rate (APR) of 16% on outstanding balance. You will be billed monthly. What is the effective annual interest rate for this credit card? (2 points)
Unformatted Attachment Preview
Purchase answer to see full attachment
Explanation & Answer
Attached.
Spring 2018 BUS 335: Midterm Section II
Name:
Please read all questions carefully.
Please provide LEGIBLE answers. You are encouraged to use word processors, for example
Microsoft Word, as much as possible.
Where you use formulas, show them.
For full credit, show all your work.
I certify that I have acted honorably.
Signed:
1. Suppose you make an investment of $3,750. This first year the investment returns
11%, the second year it returns 7.5%, ...