Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

19, Suppose you will receive $500 at some point in the future. If the annual interest rate is 7 percent, then the present value of

image text in transcribed
19, Suppose you will receive $500 at some point in the future. If the annual interest rate is 7 percent, then the present value of the $500 is $411.26 if the $500 is to be received in 5 years and $338.93 if the $500 is to be a. received in 10 years received in 10 y received in 10 years. received in 10 years. b $348.28 if the $500 is to be received in 5 years and $242.60 if the $500 is to be $291.11 if the $500 is to be received in 5 years and $272.89 if the $500 is to be d. $291.11 if the 5500 is to be received in 5 years and $236.49 if the $500 is to be somecone offers you $100 today or $200 in 10 years. You would prefer to take the 20. Imagine that $100 today if the interest rate is a. percent. b. 6 percent. e 8 percent. d. All of the above are correct. 21. What is the future value of $375 at an interest rate of 3 percent one year from today? $371.75 $386.25 5393.33 None of the above are correct to the nearest cent. b. d. 22. You put $75 in the bank one year ago and forgot about it. The bank sends you a notice that you now have S81 in your account. What interest rate did you earn? 5 percent 6 percent 7 percent b. d. 8 percent the bank two years ago and forgot about it. The bank sends you a notice that you 23. You put $150 in now have $169.34 in your account. What interest rate did you earm? a. 5.50 percent b. 5.65 percent c. 6.25 percent d. 7.05 percent 24. Two years ago Darryl put $3,000 into an account paying 3 percent interest. How much does he have in the account today? a. $3,180.00 b. $3,182.70 c. $3,183.62 d. None of the above are correct to the nearest cent 25. Anna deposited $10,000 into an account three years ago. The first year she earned 12 percent interest, the second year she earned 8 percent interest, and the third year she earned 4 percent interest. How much money does she have in her account today? a. $12,579.84 b. $12,596.80 c. $12,597.12 d. None of the above are correct to the nearest cent 26. The natural rate of unemployment is the a. b. c. d. unemployment rate that would prevail with zero inflation. rate associated with the highest possible level of GDP difference between the long-run and short-run unemployment rates. amount of unemployment that the economy normally experiences

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Wealth Inequality Asset Redistribution And Risk Sharing Islamic Finance

Authors: Tarik Akin , Abbas Mirakhor

1st Edition

3110583739, 3110583887, 9783110583885

More Books

Students also viewed these Finance questions