Reference no: EM131061239
1. If the future value of a one-period investment is given by the formula,F=I+ (I×R), what is the formula for the amount of the investment,I?
I = F/(1 + R) I = F - (1 × R) I = F x (1 × R) I = F x (1 + R)
2. The opposite process rule says to solve for ________.
a known variable by replicating the process used to form the original equation an unknown variable by reversing the process used to form the original equation an unknown variable by replicating the process used to form the original equation a known variable by reversing the process used to form the original equation
3. When solving for an unknown that involves more than one process, the multiple process rule requires that ________.
addition, subtraction, multiplication, and division must happen simultaneously the variable is added to both sides of the equation so that it appears twice multiplication and division are always completed before addition and subtraction the variable is first isolated on one side of the equals sign
4. If the future value of a one-period investment is given by the formula,F=I+ (I×R), what is the formula for the rate of interest,R?
R = F - (I × F) R = I + (I × F) R = (F - I) × I R = (F - I)/I
5. If the bank returns $50 on a $1,000 deposit after one year, what is the interest rate earned on this deposit?
0.95% 5% 50% 0.05%
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