Suppose that the interest rate is 2 percent. Instructions: Round your answers to 2 decimal places. a. What is the future value of $100 six years from now? How much of the future value is total interest? b. By how much would total interest be greater at an interest rate of 4 percent than at an interest rate of 2 percent?

Suppose that the interest rate is 2 percent. Instructions: Round your answers to 2 decimal places. a. What is the future value of $100 six years from now? How much of the future value is total interest? b. By how much would total interest be greater at an interest rate of 4 percent than at an interest rate of 2 percent?

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance

Section: Chapter Questions

Problem 13PAE

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