Question
(a) Suppose that we know that a future value is R = $40000. If the rate of interest (i) is 5%, and the time period
(a) Suppose that we know that a future value is R = $40000. If the rate of interest (i) is 5%, and the time period (n) is 4 years calculate the Present Value (P). Show your calculations.
(b) If we invest $12000 today at 4% interest what is the future value in 6 years?Show your calculations.
(c) Using the rule of 70, how long will it $10000 to double assuming a 3.5% rate of interest? Show your calculations.
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International Economics
Authors: Thomas A. Pugel
15th edition
73523178, 978-0077769529, 007776952X, 978-0073523170
