Homework Answers
4.
Rate of interest = i = 4% or 0.04
Value at Period 17 = F = 4000
Let Value at period 6 be P
The Value at Time 0 for both will be equal
=> F/(1+i)17 = P/(1+i)6
=> 4000/(1+0.04)17 = P/(1+0.04)6
=> P = 4000/(1+0.04)11
=> P = $2598.32
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Er 4. If money grows at a simple annual interest rte of 496, what is the value at time 6 of$4000 ...
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b) You have 10 acres of land that can be used for residential
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annually?
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a) Your family loans you money for school at a simple interest
rate of 5%. If the original amount they provided was $20,000 what
will you be paying them back in 5 years?
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development. It is worth $20,000 per acre right now. What would it
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annually?
c) Which...
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