Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

it is about Simple Interest Present Value 1-Find the amount Ashkin should deposit today if he needs $3,750 in his account in 5 months. Assume

it is about Simple Interest Present Value

1-Find the amount Ashkin should deposit today if he needs $3,750 in his account in 5 months. Assume his account pays 4% simple interest.

2-Miguel promised to give his daughter $13,000 at the end of 3 years for a used car. What lump sum should he deposited today in an account paying 4% simple interest in order for him to have $13,000 at the end of 3 years?

8-A new computer costs $2,100. If the price of computers has increased by 1% in the past 6 months, how much did the computer cost 6 months ago? Assume the price increase follows a simple interest calculation.

9-Today, new tires for a high performance car cost $1,400. If the price of tires has increased by 1% over the past 12 months, how much did they cost 12 months ago? Assume the price increase follows a simple interest calculation.

10-A new luxury car costs $39,000. If the price of the car has increased 2% in the past 12 months, how much did the car cost 12 months ago? Assume the price increase follows a simple interest calculation.

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

Governance Of Financial Management

Authors: John Carver, Miriam Carver

1st Edition

0470392541, 9780470392546

More Books

Students also viewed these Finance questions

Question

How should a consultant be selected?

Answered: 1 week ago

Question

Why is a consulting contract needed?

Answered: 1 week ago