Your brother has asked you to help him with choosing an investment. He has $4,500 to invest today for a period of two years. You identify a bank CD that pays an interest rate of 0.0300 annually with the interest being paid quarterly. What will be the value of the investment in two years? Round to two decimal places.
Your brother has asked you to help him with choosing an investment. He has $4,500 to invest today for a period of two years. You identify a bank CD that pays an interest rate of 0.0300 annually with the interest being paid quarterly. What will be the value of the investment in two years? Round to two decimal places.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 22P
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Your brother has asked you to help him with choosing an investment. He has $4,500 to invest today for a period of two years. You identify a bank CD that pays an interest rate of 0.0300 annually with the interest being paid quarterly. What will be the value of the investment in two years? Round to two decimal places.
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Future Value: It refers to the value of any investment or asset in a specified future date.
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