The annual interest rate-what is the npv of transaction

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Suppose that r, the annual interest rate, is 0.20, and that all money in the bank earns 20% interest each year (that is, after being in the bank for one year, SI will increase to SI .20) If we place SI 00 in the bank for one year what is the NPV of this transaction?

Reference no: EM131368795

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The annual interest rate-what is the npv of transaction : Suppose that r, the annual interest rate, is 0.20, and that all money in the bank earns 20% interest each year (that is, after being in the bank for one year, SI will increase to SI .20) If we place SI 00 in the bank for one year what is the NPV of t..

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