What is the present value for a
What is the interest rate “r” if PV=$100 and the FV=$350 in year t=12?
What is the interest rate “r” if PV=$1250 and the FV=$2150 in year t=10?
How long will it take to double your investment if the interest rate is r=0.06 (r=6%)?
How long will it take to increase your investment by 2.5 times if the interest rate is r=0.14 (r=14%)?
Which is the better option if the interest rate is r=0.10 (r=10%)? Show all work used to arrive at your answer.
a. Option I: Receive $1000 today at time t=0.
b. Option II: Receive $1615 at time t=5.10)
Which is the better option if the interest rate is r=0.07 (r=7%)? Show all work used to arrive at your answer.
a. Option I: Receive $510 today at time t=0.
b. Option II: Receive $1000 at time t=10.
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