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If the rate of interest (r) is 9%, then you should be indifferent about receiving $9,500 in one year or ________.
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- Suppose the interest rate is3.6%. a. Having $650 today is equivalent to having what amount in one year? b. Having $650 in one year is equivalent to having what amount today? c. Which would you prefer, $650 today or $650 in one year? Does your answer depend on when you need the money? Why or why not? a. Having $650 today is equivalent to having what amount in one year? It is equivalent to $____. (Round to the nearest cent.)If the risk-free rate of interest (rf) is 6%, then you should be indifferent between receiving $250 in one year or A) $235.85 today. B) $250.00 today. C) $265.00 today. D) None of the aboveIf the risk-free rate of interest (r) is 10%, then you should be indifferent between receiving $100 in one year or A. $100.00 today. O B. $90.91 today. O C: $109.09 today. O D. none of the above
- Suppose the interest rate is 3.6% b. Having $650 in one year is equivalent to having what amount today? c. Which would you prefer, $650 today or $650 in one year? Does your answer depend on when you need the money? Why or why not? **round to the nearest cent**You have the following choice: You can receive $1,000 today or $1,100 in one year. The annual interest rate is 8%. Which should you choose? a.1,000 today b.1,100 in one year c. There is not enough information to choose d. Neither. You don't want or need the moneyIf the risk-free rate of interest (r) is 7%, then you should be indifferent between receiving $750 today or A. $802.50 in one year. O B. $750.00 in one year. OC. $700.93 in one year. D. none of the above nook Air
- 4. If you receive $116 each month for 28 years and the discount rate is 0.08, what is the present value? (show the process and can use financial calculator)3. If you receive $98 each month for 12 months and the discount rate is 0.07, what is the present value? (show the process and can use financial calculator)1. A consumer, who is initially a lender, remains a lender even after a decline in interest rates. Is this consumer better off or worse off after the change in interest rates? If the consumer becomes a borrower after the change is he better off or worse off? 2. What is the present value of $100 one year from now if the interest rate is 10%? What is the present value if the interest rate is 5%?
- 1. If you receive $176 each month for 12 months and the discount rate is 0.04, what is the future value? (show the process and can use financial calculator)You are comparing two annuities. Annuity A pays $110 at the end of each year for 5 years. Annuity B pays $100 at the beginning of each year for 5 years. The rate of return on both annuities is 8 percent. Which one of the following statements is correct given this information? O Annuity B has both a higher present value and a higher future value than Annuity A. Annuity A has both a higher present value and a higher future value than Annuity B. O Annuity A has the same present value and future value as Annuity B.2. If you receive $99 each quarter for 17 years and the discount rate is 0.05, what is the future value? (show the process and can use financial calculator)