What is the compound annual rate implied

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Reference no: EM132062813

1. Future Value Compute the future value in year 6 of a $370 deposit in year 3 and another $170 deposit at the end of year 5 using a 12% interest rate.

$693.60

$710.22

$908.40

$1,065.86

2. What is the present value (PV) of an investment that pays $ 110000 every year for four years if the interest rate is 5% APR, compounded quarterly?

a) 505,960

b) 389,200

c) 428,120

d) 467,040

3. Compound Frequency Payday loans are very short-term loans that charge very high interest rates. You can borrow $1,600 today and repay $1,872 in two weeks. What is the compound annual rate implied by this 17 percent rate charged for only two weeks?

17.40%

18.45%

5,826.97%

20.40%

Reference no: EM132062813

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