Question
Suppose you deposit $240 today, $686 in one year, and $837 in two years in an account that pays an annual rate of interest of
Suppose you deposit $240 today, $686 in one year, and $837 in two years in an account that pays an annual rate of interest of 12.02%.
How much money will be in the account after three years?
2. If you deposit $171 at 12.68% annual interest compounded daily, how much money will be in the account after 7 years? (Assume that there are 364 days in a year
3. What is the value today of receiving a single payment of $80,226 in 3 years if your required rate of return on this investment is 17.33% compounded semi-annually?
Step by Step Solution
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To solve these problems we can use the compound interest formula A P1 rnnt Where A the future value ...
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
