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malfutka [58]
3 years ago
6

Your grandmother invested one lump sum 17 years ago at 4.25 percent interest. Today, she gave you the proceeds of that investmen

t which totaled $5,539.92. How much did your grandmother originally invest
Business
1 answer:
White raven [17]3 years ago
3 0

Answer:

The lump sum invested was $2,730.30.

Explanation:

Giving the following information:

Invested one lump sum 17 years ago at 4.25 percent interest. Today, the proceeds totaled $5,539.92.

We need to calculate the original amount that this person invested 17 years ago. We will use the following formula:

PV= FV/(1+i)^n

PV= 5,539.92/ (1.0425)^17

PV= $2,730.30

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Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $250.00
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Answer:

10.38%

Explanation:

From the question above a bank offers to lend an amount of $10,000 for a period of 1 year

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= (1+r/m)^m-1

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= [1+(10/100)/4]^-1

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= (1.025^4)-1

= 1.1038-1

= 0.1038×100

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