Show your work for all answers! 1. Today Zack purchased an investment grade gold coin for $50,000. He expects the coin to increase in value at a rate of 12% compounded annually for the next 5 years. How much will the coin be worth at the end of the fifth year if his expectations are correct? 2. Jason purchased $60,000 worth of silver coins 8 years ago. The coins have appreciated 7.5% compounded annually over the last 8 years. How much are the coins worth today? 3. Kasey wants to give her daughter $25,000 in 8 years to start her own business. How much should she invest today at an annual interest rate of 8% compounded annually to have $25,000 in 8 years?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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TVM-Self Assessment Assignment
Show your work for all answers!
1. Today Zack purchased an investment grade gold coin for $50,000. He expects the coin to increase in value at a
rate of 12% compounded annually for the next 5 years. How much will the coin be worth at the end of the fifth
year if his expectations are correct?
2. Jason purchased $60,000 worth of silver coins 8 years ago. The coins have appreciated 7.5% compounded
annually over the last 8 years. How much are the coins worth today?
3. Kasey wants to give her daughter $25,000 in 8 years to start her own business. How much should she invest
today at an annual interest rate of 8% compounded annually to have $25,000 in 8 years?
Cc
%23
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8
2
4.
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Transcribed Image Text:. McGrav 9 Questio O Questio t Dr. Dav Home G 1. what WFinal e W Word CU One O New Ta O (202) Y 6 x A courses.campbellsville.edu/pluginfile.php/3951141/mod_resource/content/1/TVM_Self-Assessment%20Assignment%20Spring%202019.docx M doooi M Gmail Assessment Assignment Spring 2019.docx prmat Tools Help BIU A - A - 喜 Normal Calibri 11 Name TVM-Self Assessment Assignment Show your work for all answers! 1. Today Zack purchased an investment grade gold coin for $50,000. He expects the coin to increase in value at a rate of 12% compounded annually for the next 5 years. How much will the coin be worth at the end of the fifth year if his expectations are correct? 2. Jason purchased $60,000 worth of silver coins 8 years ago. The coins have appreciated 7.5% compounded annually over the last 8 years. How much are the coins worth today? 3. Kasey wants to give her daughter $25,000 in 8 years to start her own business. How much should she invest today at an annual interest rate of 8% compounded annually to have $25,000 in 8 years? Cc %23 % 8 2 4. e
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