Answered: 1. Assume you plan to invest $2000 for…

1. Assume you plan to invest $2000 for five years in a bank where the bank is offering to pay a simple interest of S% per annum. Calculate the value of investment after 5 years.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...

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Concept explainers

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.

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FIN 501: FUNDAMENTALS OF FINANCE
TUTORIAL 4 QUESTIONS
1. Assume you plan to invest $2000 for five years in a bank where the bank is offering to pay a
simple interest of S% per annum. Calculate the value of investment after 5 years.

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