Exam 4: Time Value of Money

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You are considering investing in a bank account that pays a nominal annual rate of 7%, compounded monthly.If you invest $3,000 at the end of each month, how many months will it take for your account to grow to $150,000?

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At the end of 10 years, which of the following investments would have the highest future value? Assume that the effective annual rate for all investments is the same and is greater than zero.

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How much would $20,000 due in 50 years be worth today if the discount rate were 7.5%?

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