What is the present value of $700 to be received in two equal installments ($350 each), two years and five years from today, when the annual discount rate is 10%?
Suppose Capitol Federal Bancorp offers a certificate of deposit that pays $10,000 in five years for exchange for $8,000 today. What interest rate is Capitol Federal Bancorp offering?
Suppose Bank One offers a certificate of deposit that pays $5,000 in four years for exchange for $4,000 today. What interest rate is Bank One offering?
How many years will take $10,000 to grow to $20,000 if bank offered rate is 10%?
How many years will take $25,000 to grow to $120,000 if bank offered rate is 18%?
Suppose you save $4,000 per year at the end of each year for 3 years and earn 5% interest per year. How much will you have at the end of 3 years?
Suppose you save $4,000 per year at the end of each year for 10 years and earn 8.5% interest per year. How much will you have at the end of 10 years?
Suppose you save $1,000 per year at the beginning of each year for 3 years and earn 5% interest per year. What is the present value of this annuity?