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- If the present value of $400 paid one year from now is $320, what is the one-year interest rate? (Note: this number is also known as the discount rate.)Would $200, which is to be received in exactly oneyear, be worth more to you today when the interest rateis 12% or when it is 17%?consider a $5,600 deposit earning 10 percent interest per year for 10 years. What is the future value? How much total interest is earned on the original deposit? How much is interest earned on interest? (do not round intermediate calculations. Round your answer to 2 decimal places.)
- Determine the simple interest. The rate is an annual rate. Assume 360 days in a year. p=$280, r=7.25%, t=2.75 years The simple interest is Consider a $1,000 deposit earning 7 percent interest per year for six years. What is the future value? How much total interest is earned on the original deposit? How much is interest earned on interest?Calculate the simple interest rate. (Round your answer to one decimal place.) P = $4300, I = $660, t = 1 year
- Suppose you invest $1,100 in an account paying 5% interest per year. What is the balance in the account after 4 years? How much of this balance corresponds to "interest on interest"? What is the balance in the account after 30 years? How much of this balance corresponds to "interest on interest"? (Round to the nearest cent.)Consider a $5,000 deposit earning 10 percent interest per year for 10 years. What is the future value, how much total interest is earned on the original deposit, and how much is interest earned on interest?A perpetuity pays $250 per year and interest rates are 7.0 percent. How much would its value change if interest rates increased to 8.5 percent? (Round your answer to 2 decimal places.) Change in value Did the value increase or decrease? decrease O increase
- What is the present value of a cash payment of $1.2 that you will receive in 5.3 years if the interest rate is 6.5%? Round to 2 decimal places. Include dollar signs ($) and percents (%) as appropriate.Suppose you need to have $57,942.00 in an account 25.00 years from today and that the account pays 11.00%. How much do you have to deposit into the account 5.00 years from today? Suppose you deposit $1,101.00 into an account 7.00 years from today. Exactly 15.00 years from today the account is worth $1,466.00. What was the account's interest rate? Suppose you deposit $1,093.00 into an account 7.00 years from today that earns 12.00%. It will be worth $1,613.00 _____ years from today. Assume the real rate of interest is 2.00% and the inflation rate is 4.00%. What is the value today of receiving 10,528.00 in 15.00 years?Suppose you deposit $1,500.00 into and account 7.00 years from today into an account that earns 14.00%. How much will the account be worth 14.00 years from today?