Question
You have just received an inheritance from a rich uncle of $90,000. You have the following options. a. Your local bank is offering a Certificate
You have just received an inheritance from a rich uncle of $90,000. You have the following options. a. Your local bank is offering a Certificate of Deposit (CD) that pays 5% interest for 5 years. What is the future value of this? b. Your financial advisor is offering a mutal fund that will give you $100,000 in ten years. If interest rate is 6%, what is the present value? c. Your brother-in-law wants to borrow the money for 3 years. If the interest rate is 4%, what are the yearly payments? d. Your son-in-law wants to borrow the money to buy a house. He offers to pay you back $110,000 in 7 years. What interest rate is he charging?
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