Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed or a variable interest rate. Assume fixed interest rates are used through out this question. Sophie plans to loan $700 to her friend who will pay a simple interest rate of 98% every year for tle loan. If no payment are made and no futher borrowing occurs between them for 11 years, then how much money will sophie's friend owe her? a. 168.60 b. 775.32 c. 1454.60 d. 1957.60 Now assume that sophia's friend volunteers to pay the compound intereST INSTEAD OF SIMPLE INTEREST FOR HER LOAN. if interest is accured at 9.8% compounded annually, all other things being equal, how much money will sophia's friend owe her in 11 years? a. 1454.60 b. 768.60 c. 191.84 d. 1957.60 Sophia has another investment option in the market taht pays 9.8% nominal interesrt, but its compounded quarterly. keeping everything else constant, how much money will sophia have in 11 years if she invests $700 in this fund. a. $168.60 b. $2030.60 c. 771.16 d. 218.49
Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed or a variable interest rate. Assume fixed interest rates are used through out this question. Sophie plans to loan $700 to her friend who will pay a simple interest rate of 98% every year for tle loan. If no payment are made and no futher borrowing occurs between them for 11 years, then how much money will sophie's friend owe her?
a. 168.60
b. 775.32
c. 1454.60
d. 1957.60
Now assume that sophia's friend volunteers to pay the
a. 1454.60
b. 768.60
c. 191.84
d. 1957.60
Sophia has another investment option in the market taht pays 9.8% nominal interesrt, but its compounded quarterly. keeping everything else constant, how much money will sophia have in 11 years if she invests $700 in this fund.
a. $168.60
b. $2030.60
c. 771.16
d. 218.49
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