Principles of Microeconomics
11th Edition
ISBN: 9780133024630
Author: CASE
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 11.A, Problem 11P
(a)
To determine
The amount received by 15 annual payments.
(b)
To determine
Present discount value.
(c)
To determine
Present discount value.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
How much do you need to save each year for 30 years in order to have $775,000, assuming you are investing the money in an account that earns 8%? How much of the $750,000 comes from principal (your out of pocket costs)?
You take out a loan of $12,000 to pay for a piece of equipment. You plan to repay the loan in 16 years. You can afford to pay a maximum of $1,100 each year. What interest rate would allow for you to pay off the entirely of the loan in equal payments?
If you borrow $ 30,000 at 6% simple interest per year for seven years, how much will you have to repay at the end of seven years?
Chapter 11 Solutions
Principles of Microeconomics
Ch. 11.A - Prob. 1PCh. 11.A - Prob. 2PCh. 11.A - Prob. 3PCh. 11.A - Calculate the present value of the income streams...Ch. 11.A - Prob. 5PCh. 11.A - Prob. 6PCh. 11.A - Prob. 7PCh. 11.A - Prob. 8PCh. 11.A - Prob. 9PCh. 11.A - Prob. 10P
Ch. 11.A - Prob. 11PCh. 11.A - Prob. 12PCh. 11 - Prob. 1PCh. 11 - Prob. 2PCh. 11 - Prob. 3PCh. 11 - Prob. 4PCh. 11 - Prob. 5PCh. 11 - Prob. 6PCh. 11 - Prob. 7PCh. 11 - Prob. 8PCh. 11 - Prob. 9PCh. 11 - Prob. 10PCh. 11 - Prob. 11PCh. 11 - Prob. 12PCh. 11 - Prob. 13PCh. 11 - Prob. 14PCh. 11 - Prob. 15PCh. 11 - Prob. 16PCh. 11 - Prob. 17PCh. 11 - Prob. 18P
Knowledge Booster
Similar questions
- How much money do you need to deposit in a bank each month if you are planning to have $5000 in four years by the time you get out of college? The bank offers a 6.75% interest rate that compounds monthly.arrow_forwardWhich is the most desirable form of a lump-sum settlement?arrow_forwardIf a lender makes a simple loan of $800 for 4 years and charges 3%,then the amount that the lender receive at maturity is $(Round your response to the nearest two decimal place) Part 2 If a lender makes a simple loan of $1500 for one year and charges $50 interest, then the simple interest rate on that loan is %. (Round your response to the nearest whole number) Part 3 If a borrower must repay $106.50 one year from today in order to receive a simple loan of $100 today, the simple interest on this loan isarrow_forward
- How many years will it take for the principal amount of Daniel to double if it is invested in an account that gives 10% ordinary simple interest?arrow_forwardMary takes out a loan for $1000 at a simple interest rate of 5% for a period of 3 years. Calculate the total amount that Mary must pay back at the end of the loan period. Round your answer to two decimal placesarrow_forwardA bank pays one percent interest on savings account four times a year. What is the actual annual interest rate?arrow_forward
- What is a simple interest rate?arrow_forwardhazel borrowed 100,000 and must repay a total of 130,000 exactly two years later. How much is the interest paid? what is the interest rate?arrow_forwardWhat is the yield to maturity on a simple loan for $5 million that requires a repayment of $9 million in seven years’ time?arrow_forward
- How long does it take (to the nearest whole year) for a money to quadruple in value when the interest rate is 15% compounding per annum? SHOW YOUR COMPLETE SOLUTION: 4 DECIMAL PLACES ONLYarrow_forwardHow much should they save annually for the next three years if they want to build up Joseph's college fund to $31,000, assuming a 5 percent rate of return and ignoring taxes on the interest?arrow_forwardHow much should you invest in a 3.8% saving account compounded monthly in order to have a total of P68,185 after 7 years? Write your answer in two decimal places.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage LearningEconomics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co