Bonnie proposes to sell her farmland for 250000 and invest


1. A bank quotes the nominal annual rate of 7%, and it compounds interest every three months. What is the value of $100 deposited in this bank after a year and three months?

2. Bonnie proposes to sell her farmland for $250,000 and invest the proceeds in stocks. She expects the investment to pay $18,000 next year and she expects this amount to grow at 4% every year subsequently forever. What is the annual percentage rate on the investment?

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Financial Management: Bonnie proposes to sell her farmland for 250000 and invest
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