8. What is the present value of $100,0 00 received in 30 days if the discount rate is 3.0% annually? (Use simple interest formula) 9. What is the future value of $50,000 earning 2.25% annually for 90 days? (Use simple interest formula)1
8. What is the present value of $100,0 00 received in 30 days if the discount rate is 3.0% annually? (Use simple interest formula) 9. What is the future value of $50,000 earning 2.25% annually for 90 days? (Use simple interest formula)1
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 7Q
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Question
8. What is the present value of $100,0 00 received in 30 days if the discount rate is 3.0% annually? (Use simple interest formula)
9. What is the
Expert Solution
Step 1
Simple interest is the amount paid on a principal part of a loan. Here the borrower does not pay interest on the accrued interest component.
Simple interest = Principal * interest rate* period.
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