1. Assume you deposit $100 in an account at 10% interest rate and leave it in...
1. Assume you deposit $100 in an account at 10%
interest rate and leave it in the account for three years. In year
3, the interest on previously received interest component will be
equal to
a. $1.00
b. $21.00
c. $2.10
d. $ 0.21
2. Assume $ 400 to be received in year 4 has a present value equal to $350. If we keep the same interest rate assumption, but instead assume that the $400 is received in year 5 we know that the resulting present value must be
a. larger than $400
b. Larger than $350
c. smaller than $350
d. equal to $350
3. if we use zero as the number of time periods in the PV formula the formula will still give as a correct answer
true
false
Homework Answers
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1. Assume you deposit $100 in an account at 10%
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You agree to deposit $500 at the beginning of each month into a
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interest monthly, what annual interest rate will you have
earned?
Note: Only use the formula listed and show the steps of how you
reached the answer, I don't need to know just the answer, I'm
trying to learn. Thank you. Don't use...
You agree to deposit $500 at the beginning of each month into a bank account for...
You agree to deposit $500 at the beginning of each month into a
bank account for the next 24 months. At the end of the 24th month,
you will have $13,000 in your account. If the bank compounds
interest monthly, what annual interest rate will you have
earned?
Note: Please post the formula used to solve the question and
list the steps taken to reach the answer, please don't use excel. I
provided a list of formulas, please state the...
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You agree to deposit $500 at the beginning of each month into a
bank account for the next 24 months. At the end of the 24th month,
you will have $13,000 in your account. If the bank compounds
interest monthly, what annual interest rate will you have
earned?
Note: Only use the formula listed and show the steps of how you
reached the answer, I don't need to know just the answer, I'm
trying to learn. Thank you. Don't use...
You agree to deposit $500 at the beginning of each month into a
bank account for the next 24 months. At the end of the 24th month,
you will have $13,000 in your account. If the bank compounds
interest monthly, what annual interest rate will you have
earned?
Note: Please post the formula used to solve the question and
list the steps taken to reach the answer, please don't use excel. I
provided a list of formulas, please state the...
Assume that the variables 1, N, and PV represent the interest rate, Investment or deposit period, and present Invested, respectively. Which equation best represents the calculation of a future value (FV) using: Compound interest? O FV = PV / (1 + I)N O FV = (1 + I)N/PV OFV = PV x (1 + 1)N Simple interest? O FV = PV / (PV * I * N) O FV = PV - (PV x 1 x N) O FV =...
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