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a. b. Score: 0 of 2 pts 7 of 10 (6 complete) HW Score: 60%, 12 of 20 pts P 3-20 (similar to) Question Help
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Score: 0 of 2 pts 7 of 10 (6 complete) HW Score: 60%, 12 of 20 pts P 3-20 (similar to) Question Help Consider the following alternatives: i. $140 received in one year ii. $230 received in five years iii. $320 received in 10 years a. Rank the alternatives from most valuable to least valuable if the interest rate is 10% per year. b. What is your ranking if the interest rate is 4% per year? c. What is your ranking if the interest rate is 18% per year? a. Rank the alternatives from most valuable to least valuable if the interest rate is 10% per year. First calculate the present value (PV) of each alternative: The PV of $140 received in one year if the interest rate is 10% per year is $. (Round to the nearest cent.) Enter your answer in the answer box and then click Check Answer. Score: 0 of 2 pts 8 of 10 (6 complete) HW Score: 60%, 12 of 20 pts P 3-22 (similar to) 3 Question Help 0 Calculate the future value of $1,000 in a. Four years at an interest rate of 8% per year. b. Eight years at an interest rate of 8% per year. c. Four years at an interest rate of 16% per year. d. Why is the amount of interest eamed in part (a) less than half the amount of interest earned in part (b)? a. Four years at an interest rate of 8% per year. The future value of $1,000 in 4 years at an interest rate of 8% per year is $. (Round to the nearest dollar.) Enter your answer in the answer box and then click CheckStep by Step Solution
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