What is the maximum that you would be willing to loan your brother for a $100 IOU if he promises to pay you back at the end of the year? You want to earn an annual rate of return of 12%. A) $82.00 B) $89.29 C) $92.73 D) $88.00
What is the maximum that you would be willing to loan your brother for a $100 IOU if he promises to pay you back at the end of the year? You want to earn an annual rate of return of 12%. A) $82.00 B) $89.29 C) $92.73 D) $88.00
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 20PROB
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1) What is the maximum that you would be willing to loan your brother for a $100 IOU if he promises to pay you back at the end of the year? You want to earn an annual rate of return of 12%.
A) $82.00
B) $89.29
C) $92.73
D) $88.00
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