A deposit of $730 earns interest rates of 9 percent in the first year and 12 percent in the second year.   What would be the second year future value? (Round your answer to 2 decimal places.)

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Q: 9 A deposit of $720 earns interest rates of 8 percent in the first year and 11 percent in the…

A: Deposit amount (P) = $720 Interest rate in year 1 (r1) = 8% Interest rate in year 2 (r2) = 11%

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Q: If you deposit OMR 5000 in your account in a bank; if your bank pays 9.05% interest, how much will…

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A: a) At the end Three years Initial Payment = $100 Time = 3 year Rate = 100%         = 10%         =…

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Q: Consider the following cash flows:   Year Cash Flow 2   $ 22,800   3     40,800   5     58,800…

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Q: I need help calculating the interest earned on interest.

A: Calculate the future value as follows:

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Q: Compute the future value in year 8 of a $3,500 deposit in year 1, and another $3,000 deposit at the…

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Q: Calculate the future value of $8,000 in a. 9 years at an interest rate of 9% per year. b. 18 years…

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Q: (a)Suppose you expect to receive GH¢ 2,000 per year for the next 22 years except that you will not…

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Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.