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Social Science Clinic => Business => Finance => Topic started by: dbose on Apr 25, 2021

Title: What is the future value of $124.49 after earning simple interest for five years at an annual rate of 10%?
Post by: dbose on Apr 25, 2021

Question 1

The rate of interest agreed upon contractually charged by a lender or promised by a borrower is the ________ interest rate.
◦ effective
◦ nominal
◦ discounted
◦ continuous

Question 2

What is the future value of $124.49 after earning simple interest for five years at an annual rate of 10%?
◦ $162.25
◦ $186.74
◦ $200.49
◦ $136.94
◦ $175.00

Title: What is the future value of $124.49 after earning simple interest for five years at an annual rate of 10%?
Post by: af on Apr 25, 2021

Answer 1

nominal

Answer 2

$186.74