What is your account balance

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Questions -

Q1. If the CPI rises from 167 to 174 and you invest at 7.5% what is your real interest rate?

Q2. What is your account balance after investing £13,000 at 4.35% for five years with annual compounding?

Q3. Your Manor charge card charges interest at 1.2% per month. What is the AER?

Q4. Value a perpetuity that pays £ 2,700 starting in May 2024. Long term rates are 8.3%. The two year interest rate is 7.8%.

Reference no: EM132965885

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