8. How much must you deposit if a bankoffers 2% interest and your goal is to have $1500 next year?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter22: Providing And Obtaining Credit
Section: Chapter Questions
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6. Suppose firms have calculated output to be 900, which would result in PAE of
1000. How would firms act and why?
7. How much money will Jan hold if the nominal interest rate is 4% and she wants
her money holdings in multiples of $100?
Average money
holdings
Total benefit
$700
$50
$800
$59
$900
$66
$1,000
$71
$1,100
$74
8. How much must you deposit if a bank offers 2% interest and your goal is to have
$1500 next year?
Transcribed Image Text:6. Suppose firms have calculated output to be 900, which would result in PAE of 1000. How would firms act and why? 7. How much money will Jan hold if the nominal interest rate is 4% and she wants her money holdings in multiples of $100? Average money holdings Total benefit $700 $50 $800 $59 $900 $66 $1,000 $71 $1,100 $74 8. How much must you deposit if a bank offers 2% interest and your goal is to have $1500 next year?
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