Compounding with different interest rates

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1. Compounding with Different Interest Rates. A deposit of $880 earns interest rates of 10.8 percent in the first year and 8.8 percent in the second year. What would be the second year future value?

2. Present Value of a Perpetuity A perpetuity pays $290 per year and interest rates are 6.9 percent. How much would its value change if interest rates increased to 9.4 percent?

3. Selling Stock with cmmissions At your full-service brokerage firm, it costs $123 per stock trade. How much money do you receive after selling 400 shares of Time Warner, Inc. (TMX). which trades at $22.75?

Reference no: EM131958740

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