How much interest would the firm have to pay

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Question 1: What would the future value of RM100 be after 5 years at 10% compound interest?

Question 2: How much would RM1,000,000 due in 100 years be worth today if the discount rate were 5%?

Question 3: What is the present value of a perpetuity that pays RM1,000 per year, beginning one year from now, if the appropriate interest rate is 5%?

Question 4: Suppose a company borrowed RM1 million at a rate of 9%, simple interest, with interest paid at the end of each month. The bank uses a 360-day year. How much interest would the firm have to pay in a 30-day month?

Question 5: Suppose a company borrows RM100,000. If the loan were amortized over 5 years with 60 monthly payments, how much would each payment be, and how would the first payment be divided between interest and principal?

Reference no: EM132535089

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