Question
Really need help understanding how to solve these problems step to step 1.) Suppose you deposit $1,546.00 into and account 7.00 years from today into
Really need help understanding how to solve these problems step to step
1.) Suppose you deposit $1,546.00 into and account 7.00 years from today into an account that earns 11.00%. How much will the account be worth 18.00 years from today?
2.) Suppose you need to have $55,596.00 in an account 15.00 years from today and that the account pays 12.00%. How much do you have to deposit into the account 13.00 years from today?
3.) Derek has the opportunity to buy a money machine today. The money machine will pay Derek $13,103.00 exactly 15.00 years from today. Assuming that Derek believes the appropriate discount rate is 5.00%, how much is he willing to pay for this money machine?
4.) Suppose you deposit $2,476.00 into an account today that earns 9.00%. In 23.00 years the account will be worth $________.
5.) Suppose you deposit $2,420.00 into an account today. In 12.00 years the account is worth $3,570.00. The account earned ____% per year.
6.) Suppose you deposit $1,244.00 into an account today that earns 14.00%. It will take ___ years for the account to be worth $2,539.00.
7.) Assume the real rate of return is 3.70% and the inflation rate is 7.20%. Find the nominal rate of return using the exact formula.
8.) Assume the nominal rate of return is 11.44% and the inflation rate is 7.27%. Find the real rate of return using the exact formula.
9.) Assume the nominal rate of return is 10.43% and the real rate is 2.88%. Find the inflation rate of return using the exact formula.
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