Suppose your bank account will be worth $4,200.00 in one year. The interest rate (discount rate) that the bank pays is 5%. What is the present value of your bank account today?

How much would your investment be worth if you deposited $5,555.55 into a bank that paid simple interest of 4% for 10 years?

Suppose you save $500 per year at the end of each year for 15 years and earn 8.25% interest per year. What is the present value of this annuity?   Suppose that the constant and perpetual cash flow is $1,000 and the discount rate is 8%. What is the value of this perpetuity?

Your first deposit of $5,000 will be made today. You also plan to make four additional deposits at the beginning of each of the next four years. Your plan is to increase your deposits by 10% a year. (That is, you plan to deposit $5,500 at t = 1, and $6,050 at t = 2, etc.) Your deposits earn a 14% return. What is the present value today of all the deposits you have made?

You will receive a cash payment of $6.4 in 4 years. If the relevant interest rate is 16.4%, how much is it worth today?   Answer:

Suppose you borrowed $1,000 from the bank and the rate of interest was 5%. What would the simple interest be if the amount is borrowed for 1 year? Suppose you deposit $4,000 at a bank at a simple interest rate of 7.5% per year. How much money will you have in the bank after 10 years? Question 2: The following questions are related to Compounded Interest: You deposit $2000 in an account earning 3% interest compounded monthly. How much will you have in the account in 20 years? How much interest will you earn? How much would you need to deposit in an account now in order to have $6,000 in the account in 8 years? Assume the account earns 6% interest compounded monthly.

You bought a 90-day bank bill 30 days ago. The face value of the bill is $100,000. The yield on this bill was 5% per annum. Today, when you sell the bank bill, the yield has increased to 6%. What is your return holding the bank bill?

How much would be in your savings account in 12 years if you deposited $1,500 today? Assume the bank pays 5 percent per year.

A local bank will pay you $135 a year for your lifetime if you deposit $3,000 in the bank today. If you plan to live forever, what interest rate is the bank paying? Note: Enter your answer as a percent rounded to 2 decimal places. Interest rate %

Your savings account pays 4% interest on the $40,000 you deposited at time 0. Inflation was 3% for 4 years and then 2% for 6 years. How much is in the account after 10 years in year-10 dollars? How much is that in year-0 dollars? What has been your real rate of return?