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Johnstone Supply Company Has $100,000 to Invest

Question 66

Essay

Johnstone Supply Company has $100,000 to invest.Determine the amount of money Johnstone will have at the end of 5 years in each of the following independent situations:
(
A)Johnstone invests the $100,000 to earn 7% interest compounded annually.
(b)Johnstone invests the $100,000 to earn 6% compounded semiannually.
(c)Johnstone invests the $100,000 to earn 4% compounded quarterly.

Correct Answer:

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(a)PV = $100,000; r = 7%; c = ...

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