- 1 If You Invest 150 000 In An Account That Pays A Nominal Annual Interest Of 20 Compounded Quarterly How Much Would 1 (100.13 KiB) Viewed 48 times
1) If you invest #150,000 in an account that pays a nominal annual interest of 20% compounded quarterly, how much would you have in the account after 92 months? 2) If you want to accumulate £250,000 in your account in five years by making fixed end-of-the-month investments in an account that pays a nominal annual rate of 24% compounded monthly, what should be the size of your fixed payments? 3) You plan to make annual end-of-the-year payments of £50,000 into an account that pays an annual rate of 20% per year for 20 years with the first payment due at the end of year 6 and the last due at the end of year 25. How much money will you have in the account at the end of your investment horizon? 4) A plant that was built five years ago required a capital investment of t10 million. The plant index was 155 at the time it was built. You will build a plant that is double the size of the old one. If the plant index now stands at 312, how much would the plant cost? (Use a capacity factor equal to 2/3.) 5) The first item of a batch took 5 hours to produce. If the learning parameter is 80%, how much time would it take to produce the first seven items? 6) The demand function for a product is given by D=5000-50*P and the cost function is given by C=5000+20*D. What is the maximum profit? (Please pay attention to the fact that demand is given as a function of price, and not the other way around as outlined in our course slides.)