(See attached file for full problem description)
—
Calculating Interest Rates (Example)
How do you determine the annual interest rate?
Present Values Future Values Time Period
_____________________________________________________
100 115.76 3-years
200 262.16 4-years
100 110.41 5-years
Coca-Cola (Example)
In 1995 coca-cola enterprisees neede to borrow about a quater of a billion dollars for 25-years. It did so by selling IOUs, each of which simply promised to pay the holder $1,000 at the end of 25-years. The market interest at the time was 8.53-percent. How much would you have been prepared to pay for one of the company’s IOUs?
PV=$1,000 X ___1_____
(1.0853)25
Can you please explain this equation step by step? Also, were does the 25 fit in??
—
(See attached file for full problem description)
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more
Recent Comments