Author Question: A 100 deposit today that earns an annual interest rate of 10 is worth how much at the end of two ... (Read 143 times)

Davideckstein7

  • Hero Member
  • *****
  • Posts: 555
A 100 deposit today that earns an annual interest rate of 10 is worth how much at the end of two years? Assume all interest received at the end of the first year is reinvested the second year.
 
  A) 100
  B) 120
  C) 121
  D) 122

Question 2

The one-time payment of money at a future date is often called a ________.
 
  A) lump-sum payment
  B) present value
  C) principal amount
  D) perpetuity payment



ricroger

  • Sr. Member
  • ****
  • Posts: 352
Answer to Question 1

Answer: C
Explanation: C) FV = PV  (1 + r)n = 100  (1.10)2 = 121.00
MODE = END
INPUT 2 10 -100 0 ?
KEY N I/Y PV PMT FV
CPT 121.00

Answer to Question 2

Answer: A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Earwax has antimicrobial properties that reduce the viability of bacteria and fungus in the human ear.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

Addicts to opiates often avoid treatment because they are afraid of withdrawal. Though unpleasant, with proper management, withdrawal is rarely fatal and passes relatively quickly.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

For a complete list of videos, visit our video library