What Is the Final Amount of an Investment Where You

question 87

Multiple Choice

What is the final amount of an investment where you are making quarterly deposits of $672.31 at the end of the payment period for 7 years and 9 months? The interest rate is 6.16% compounded semi-annually.

• A) $26 811.16
• B) $28 611.16
• C) $26 611.57
• D) $28 811.16
• E) $26 407.57

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Definitions:

Semi-annually

Semi-annually refers to an event or action that occurs twice a year, typically every six months.

Coupon Rate

The interest rate that a bond issuer agrees to pay to the holder annually, expressed as a percentage of the bond's face value.

Intrinsic Value

The perceived or calculated true value of an asset, investment, or company, based on fundamental analysis, regardless of its current market value.

Par Value

The face value of a bond or the stock value stated in the corporate charter.