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If $1000 is placed in an account that earns a nominal 16 percent, compounded quarterly, what will it be worth in 5 years?

Your bank account pays a 12% nominal rate of interest.  The interest is compounded monthly.  Which of the following statements is CORRECT?

Rule 72 assumes an interest rate around 10.4% and says that money should double every 7 years.

Rule 72 assumes an interest rate around 10.4% and says that money should double every 2 years.

You have just invested $5,000 in a stock market mutual fund that you think will generate a return of 10% per year. What is the anticipated future value of this investment in 10 years?

A 5-year $100 annuity due will have a lower present value than a 5-year $100 ordinary annuity.

Noncallable bonds that mature in 10 years were recently issued by Sternglass Inc. They have a par value of $1,000 and an annual coupon of 6.5%. If the current market interest rate is 7.0%, at what price should the bonds sell?

Suppose you just won the state lottery, and you have a choice between receiving $500,000 today or a 25-year annuity of $50,000, with the first payment coming one year from today.  What rate of return is built into the annuity?

A stock is expected to pay a dividend of $1.90 at the end of the year. The current stock price is $32.00, and growth (which is constant) = 4.6%. What is the expected dividend yield for this stock?

If an investment pays 12 percent interest compounded annually, its effective annual rate will also be 12 percent.