Suppose that the interest rate is 2 percent. Instructions: Round your answers to 2 decimal places. a. What is the future value of $100 six years from now? How much of the future value is total interest? b. By how much would total interest be greater at an interest rate of 4 percent than at an interest rate of 2 percent?

Suppose that the interest rate is 2 percent. Instructions: Round your answers to 2 decimal places. a. What is the future value of $100 six years from now? How much of the future value is total interest? b. By how much would total interest be greater at an interest rate of 4 percent than at an interest rate of 2 percent?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: The Basic Tools Of Finance

Section: Chapter Questions

Problem 1QR

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