2. Would you prefer to receive a) 75 TL one year from now, b) 85Tl two years from now or c) 90TL three years from now if the interest rate 20% ?
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- What would you prefer to receive if the interest rate is 20%? OA. $64 one year from now B. $95 four years from now OC. $84 three years from now O D. $73 two years from now.Q1: Calculate (PW) for annual payments (900$/year) if the first payment will deposit at the present time, and the last one will deposit at begin of the ninth year? If you know that it's on deposit at the fifth year, and the interest rate is (15%)!Suppose the interest rate is3.6%. a. Having $650 today is equivalent to having what amount in one year? b. Having $650 in one year is equivalent to having what amount today? c. Which would you prefer, $650 today or $650 in one year? Does your answer depend on when you need the money? Why or why not? a. Having $650 today is equivalent to having what amount in one year? It is equivalent to $____. (Round to the nearest cent.)
- Suppose the interest rate is 3.6% b. Having $650 in one year is equivalent to having what amount today? c. Which would you prefer, $650 today or $650 in one year? Does your answer depend on when you need the money? Why or why not? **round to the nearest cent**You deposit $2X today, $3X one year from now and $3X two years from now. If there are different annual compounding interest rates per period as shown in the diagram below and if you had $19803 at the end of year 3, what is the value of X?4. If you deposit $1000 in one year, $2000 in two years, and $3000 in three years, how much will you have in three years? Assume a 7 percent annum interest rate. NPV FV
- 2. Find the future value of OMR10,000 invested now after five years if the annual interest rate is 8 percent. a. What would be the future value if the interest rate is a simple interest rate? b. What would be the future value if the interest rate is a compound interest rate?2. Which of the following alternatives would you rather receive, assuming an interest rate of 8% per year? Alternative 1: Receive $100 today: Alternative 2: Receive $120 two years from now2. Select one of the following questions to answer: If $120 doubles in approximately 13 years, what is the interest rate? If $120 doubles in approximately 19 years, what is the interest rate? If $120 doubles in approximately 23 years, what is the interest rate?
- Define the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future value be larger or smaller if we compound an initial amount more often than annually—for example, every 6 months, or semiannually—holding the stated interest rate constant? Why? What is the future value of $100 after 5 years under 12% annual compounding? Semiannual compounding? Quarterly compounding? Monthly compounding? Daily compounding? What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 12%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily?If you are expecting to get OMR 11240 at the end of 9 years; calculate its present value if the interest rate is 2.24% and is computed monthly? Select one: a. 9024.61 b. 9046.11 c. 9042.16 d. 9189.55 e. None of the optioYou are looking at an investment that will pay R1 800 in 8 years if you invest R900 today. What is the impliedrate of interest?
