MACROECONOMICS W/CONNECT
MACROECONOMICS W/CONNECT
18th Edition
ISBN: 9781307253092
Author: McConnell
Publisher: Mcgraw-Hill/Create
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Chapter 17, Problem 2P
To determine

Present value of an investment.

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You can invest in an account that pays simple interest or an account that pays compound interest. In either case, you plan to invest $2,900 today and both accounts have an annual interest rate of 8 percent. How much more interest will you receive in the 11th year in the account that pays compound interest?
44. If you invest $10,400 in the United States, and the interest is compounded monthly, when, to the nearest month, will your investment be worth $20,000?
Find the present value of $750 to be paid four years from now when the prevailing interest rate is 10 percent, if interest is compounded annually.
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