Macroeconomics
Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 24, Problem 4SPA
To determine

Identify the future value.

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Erin buys a bond that pays no coupon payments for $160. When the bond matures, she receives $200.   Erin earned an interest rate of ____________ percent on this bond.   (Enter your answer "as a percent, but without the percentage sign." If you think Erin earned 99.99 percent interest, enter only 99.99 in the blank.)
ran Lee plans to set aside $2,600 a year for the next seven years, earning 3 percent. What would be the future value of this savings amount? Use Exhibit 1-B. (Round your discount factor to 3 decimal places and final answer to 2 decimal places.)
The interest rate is 6 percent a year and you expect to receive $1,000 next year and the following year. What is present value of $1,000 to be received in two years? The present value of $1,000 to be received in two years is $____ Answer to 2 decimal places Thanks!
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