Reference no: EM133012991
Questions -
Q1. Suppose you are given the following information: Years: 15, Interest Rate: 8%, compounded annually Future Value: $50,000. Calculate the present value.
Q2. Suppose you are given the following information:
Years: 10
Present Value: $25,000
Future Value: $37,500
Calculate the interest rate required on the investment.
Q3. Suppose you are given the following information:
Years: 20
Interest Rate: 10%
Present Value: $580,000
Calculate the future value.
Q4. Mike just put $50,000 into an account that promises to pay 2% APR (annual compounding). Calculate the total interest earned over a 10 year holding period.
Q5. Mike just put $50,000 into an account that promises to pay 2% APR (annual compounding). Calculate the total simple interest earned over a 10 year holding period.
Q6. Mike just put $50,000 into an account that promises to pay 2% APR (annual compounding). Calculate the total compound interest (int-on-int) earned over a 10 year holding period.