An investment broker that Ava trusts recommended that she purchase a $50,000, 15-year municipal bond that generates a dividend of 5% per year payable quarterly. She will pay a discounted amount of $45,000 now for the bond. In general, Ava hopes to make 7% per year compounded quarterly on her investments. Using the PW value, determine if this is a financially advantageous investment for her. Solve with factors. The present worth is $ 23,102.49 This is not o a financially sound investment.
An investment broker that Ava trusts recommended that she purchase a $50,000, 15-year municipal bond that generates a dividend of 5% per year payable quarterly. She will pay a discounted amount of $45,000 now for the bond. In general, Ava hopes to make 7% per year compounded quarterly on her investments. Using the PW value, determine if this is a financially advantageous investment for her. Solve with factors. The present worth is $ 23,102.49 This is not o a financially sound investment.
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 12DQ
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Transcribed Image Text:An investment broker that Ava trusts recommended that she purchase a $50,000, 15-year municipal bond that generates
a dividend of 5% per year payable quarterly. She will pay a discounted amount of $45,000 now for the bond. In general,
Ava hopes to make 7% per year compounded quarterly on her investments.
Using the PW value, determine if this is a financially advantageous investment for her. Solve with factors.
The present worth is $ 23,102.49 x
X
This is not
a financially sound investment.
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