1. What interest rate (the nearest percent) must Charlie earn on a $452,000 investment today so that he will have $1,140,000 after 12 years?
a. 9%.
b.. 7%.
c. 8%.
d. 6%.
2. What would you pay for an investment that pays you $40,000 at the end of each year for the next ten years and then returns a maturity value of $600,000 after ten years? Assume that the relevant interest rate for this type of investment is 8%.
a. $268,404.
b. $546,317.
c. $277,916.
d. $289,872.