Investment A offers an 8% return compounded semiannually, and Investment B offers a 7.75% return compounded continuously. Which investment has a higher rate of return over a 4-year period?

Fill in the blanks in the schedule below for two separate investment centers A and B. Round answers to the nearest whole percent.

You are considering an investment in a mutual fund with a 4% load and an expense ratio of .5%. You can invest instead in a bank CD paying 6% interest. If you plan to invest for two years, what annual rate of return must the fund portfolio earn for you to be better off in the fund than in the CD? Assume annual compounding of returns.

An investment initially worth $1200 grows by$11.2 \%$per year. When will the investment be worth$5000?

In 2010 an investment was worth $12,000. By 2015, the investment had lost 20% of its value (a percent change of -20%). a. What was the value of the investment by 2015? b. Suppose the investor wants the value of the investment to return to its 2010 value within the next 3 years. She wants to know by what percent her investment must change in order to regain its former value. Determine the percent change necessary for her investment to return to its previous value.

Use Newton’s method to determine the interest rate if the interest was compounded continuously. Consider a bank investment. The initial investment is $10,000. After 25 years, the investment has tripled to$30,000.

To get the best loan rates available, the Riches want to save enough money to place $20 \%$ down on a $\$ 160,000$ home. They plan to make monthly deposits of $125 in an investment account that offers 8.5% annual interest compounded semiannually. Will the Riches have enough for a$20 \%$ down payment after five years of saving? How much money will they have saved?

If an investment triples in 15 years, what interest rate (compounded continuously) does the investment earn?

Which is the better investment and why: 9% compounded quarterly or 9.25% compounded annually?

How does investment as defined by economists differ from investment as defined by the general public? What would happen to the amount of economic investment made today if firms expected the future returns to such investment to be very low? What if firms expected future returns to be very high?

You plan to buy 100 shares of stock for $\$45.00$ per share. If you use a full-service broker, the fee will be a 2 percent commission on the purchase price. Investment advice is included at no extra cost. What will be the amount of the commission you must pay? If you use a discount broker, you will pay a fee of $\$9.95$ for this round lot purchase. No investment advice is provided. You have already paid $\$100.00$ for an investing newsletter to help you decide which stock to buy. Which broker would you use and why?

To get the best loan rates available, the Riches want to save enough money to place $20 \%$ down on a $\$ 160,000$ home. They plan to make monthly deposits of $\$ 125$ in an investment account that offers $8.5 \%$ annual interest compounded semiannually. Will the Riches have enough for a $20 \%$ down payment after five years of saving? How much money will they have saved?

What is the deserter's plan?

What was the Anaconda Plan?