1. Hannah deposited 1,500 in a bank with an interest rate for 1 year. What is the future of her deposit? 2. Francis needs to save up to 1,500 in 1 yeat. How much should he save now if the bank offers a rate of 5%? Find the present value. 3. Marie deposited 1,000 in her bank account. If the bank pays her 4% simple interest, how much interest will she accumulate in her account after 10 years? What if the bank pays compound interest? 4. What is the present value of the following cash flow stream if the interest is 7%? Year Cash Flow 250 350 3 500
1. Hannah deposited 1,500 in a bank with an interest rate for 1 year. What is the future of her deposit? 2. Francis needs to save up to 1,500 in 1 yeat. How much should he save now if the bank offers a rate of 5%? Find the present value. 3. Marie deposited 1,000 in her bank account. If the bank pays her 4% simple interest, how much interest will she accumulate in her account after 10 years? What if the bank pays compound interest? 4. What is the present value of the following cash flow stream if the interest is 7%? Year Cash Flow 250 350 3 500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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