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Author Question: Kathy deposited 100 in a savings account that paid 8 interest, compounded annually. How much ... (Read 123 times)

cmoore54

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on: Jul 10, 2018
Kathy deposited 100 in a savings account that paid 8 interest, compounded annually. How much compound interest did she earn after 2 years?
 
  A) 15.64
  B) 16.64
  C) 8.08
  D) 8.00
  E) 8.64

Question 2

You have the opportunity to purchase mineral rights to a property in North Dakota with expected annual cash flows of 10,000 per year for eight years.
 
  If you discount these cash flows at a rate of 12 per year, what are these cash flows worth today if the cash flows occur at the end of each period?
  A) 55,637.57
  B) 49,676.40
  C) 80,000.00
  D) 122,996.93


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mbcrismon

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Reply #1 on: Jul 10, 2018
Answer to Question 1

B

Answer to Question 2

Answer: B
Explanation: B)
PV = PMT  = 10,000  = 49,676.40.
MODE = END
INPUT 8 12 ? -10,000 0
KEY N I/Y PV PMT FV
CPT 49,676.40


cmoore54

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Reply 2 on: Jul 10, 2018
Great answer, keep it coming :)

essyface1

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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