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Author Question: You deposit $100 in a bank for a fixed 7 year term. Interest on the deposit is calculated every ... (Read 45 times)

lindiwe

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on: Apr 25, 2021

Question 1

What is the future value of the following cash flows in year 5 with an interest rate of 6%?

YearCash Flow
1$200
2$400
3$600
4$800
5$1000

◦ $3,251.06
◦ $3,446.13
◦ $3,067.04
◦ $3,000.00
◦ $3,180.00

Question 2

You deposit $100 in a bank for a fixed 7 year term. Interest on the deposit is calculated every half-year (m = 2) at the rate of 5% per half-year (i/m = 5%). Because the term is fixed, you are not allowed to withdraw interest at any point. You earn interest in the final compounding period of the term. How much of that interest is earned off of earlier interest (as opposed to earned off of the principal)?
◦ $4.43
◦ $9.43
◦ $4.90
◦ $5.00
◦ $9.90
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by lindiwe on Apr 25, 2021

Benayers

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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lindiwe

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

recede

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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