Finance · Guided Practice
Present Value with Variable Rates
4 questions with answers. Try each one before revealing the answer.
1
A savings bond paid an effective rate of interest of in the first year, in the second year and in the third year.
After years the balance was .
Calculate the amount originally deposited.
Give your answer to the nearest penny.
After years the balance was .
Calculate the amount originally deposited.
Give your answer to the nearest penny.
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Answer
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2
An account paid an effective rate of interest of per year for years and then per year for years.
After years the balance was .
Calculate the amount originally deposited.
Give your answer to the nearest penny.
After years the balance was .
Calculate the amount originally deposited.
Give your answer to the nearest penny.
Video solution coming soon
Answer
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3
An account paid an effective rate of interest of per month for months and then per month for months.
After months the balance was .
Calculate the amount originally deposited.
Give your answer to the nearest penny.
After months the balance was .
Calculate the amount originally deposited.
Give your answer to the nearest penny.
Video solution coming soon
Answer
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4
A corporate account paid an effective rate of interest of in the first year and in the second year.
After years the balance was .
Calculate the amount originally deposited.
Give your answer to the nearest penny.
After years the balance was .
Calculate the amount originally deposited.
Give your answer to the nearest penny.
Video solution coming soon
Answer
Video solution coming soon