If Charlie invests $50,000 in a cheese company today and is offered a 5% interest rate. How much will his investment be worth in 3 years? 2. If someone offers you 9028.91  in 8 years and the average interest rate is 6%. What is the present value of the investment?

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter17: Financial Markets
Section: Chapter Questions
Problem 5SCQ: Investors sometimes fear that a high-risk investment is especially likely to have low returns. Is...
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1.

If Charlie invests $50,000 in a cheese company today and is offered a 5% interest rate. How much will his
investment be worth in 3 years?

2.

If someone offers you 9028.91  in 8 years and the average interest rate is 6%. What is the present value of the investment?

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