(a) What is the amount of interest at the end of 2 years on $450 principal for a simple interest rate of 10% per year?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 16P
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(a) What is the amount of interest at the end of 2 years on $450 principal for a simple interest
rate of 10% per year?
(b) Find the principle if the interest amount at the end of 2.5 years is $450 for a simple interest
rate of 10% per year.
(c) An investment of $50,000 is proposed at an interest rate of 8%. What is the future amount
in 10 years? Consider both the simple and compound interests.
(d) What is the present worth of $1000 for 6 years, if money is compounded 10% annually.
(e) How many years will it take for an investment to double itself if the interest rate is 10%?

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