Present value and interest-on-interest

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Reference no: EM131819184

Present Value-What is the present value of a $1,550 payment made in seven years when the discount rate is 9 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Present value=

Interest-on-Interest. Consider a $1,500 deposit earning 8 percent interest per year for five years.

What is the future value? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Future value=

How much total interest is earned on the original deposit? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Total interest earned=

How much is interest earned on interest? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Interest earned on interest=

Reference no: EM131819184

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