Question
1.Occasionally a savings account may actually pay interest compounded continuously. For each deposit, find the interest earned if interest is compounded (a) semiannually, (b) quarterly,
1.Occasionally a savings account may actually pay interest compounded continuously. For each deposit, find the interest earned if interest is compounded (a) semiannually, (b) quarterly, (c) monthly, (d) daily, and (e) continuously. Use 1
year=365
days.
| Principal | Rate | Time |
|---|---|---|
| $1049 | 1.6% | 4 years |
2. Find the present value for the following future amount. $1000 at 2% compounded annually for 5 years
3. The year
2018
price of a fast food meal at a certain restaurant is given below. Find the estimated future prices required to fill the blanks in the chart.
| Item | 2018 price | 2024 price 2% inflation | 2030 price 2% inflation | 2024 price 9% inflation | 2030 price 9% inflation | |
|---|---|---|---|---|---|---|
| a fast food meal | $3.91 | ______ | ______ | ______ | ______ |
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The Analysis And Use Of Financial Statements
Authors: Gerald I. White, Ashwinpaul C. Sondhi, Haim D. Fried
2nd Edition
0471111864, 978-0471111863
