Situation 1
b) If $100 at Time “0” will be worth $110 a year later and was $90 a year ago, compute the interest rate for the past year and the interest rate next year.
c) Assume that $90 invested a year ago will return $110 a year from now. What is the annual interest rate in this situation?
Suppose that $2000 is deposited in an account that earns 6% interest. How much is in the account
a. after 5 years?
b. after 10 years?
c. after 20 years?
d. after 50 years?
e. after 100 years?
A loan of P2, 000 is made for a period of 13 months, from January 1 to January 31 the following year, at a simple interest of 20%. What is the future amount is due at the end of the loan period?