Compare the current or recent level of interest rates among the three types of loans

Chapter 9

Exercise

1 Go to the Federal Reserve website, http://www.federalreserve.gov. Go to “Economic Research and Data,” and access “Consumer Credit.” Find interest rates charged by commercial banks on new automobile loans, personal loans, and credit card plans.

  1. Compare      the current or recent level of interest rates among the three types of      loans.
  2. Compare      trends in the cost of consumer credit provided by commercial banks over      the past three years.

Problems

2 Find the future value of $10,000 invested now after five years if the annual interest rate is 8 percent.

  1. What      would be the future value if the interest rate is a simple interest rate?
  2. What      would be the future value if the interest rate is a compound interest      rate?

3 Determine the future values if $5,000 is invested in each of the following situations:

  1. 5      percent for ten years
  2. 7      percent for seven years
  3. 9      percent for four years

4 You are planning to invest $2,500 today for three years at a nominal interest rate of 9 percent with annual compounding.

  1. What      would be the future value of your investment?
  2. Now      assume that inflation is expected to be 3 percent per year over the same      three-year period. What would be the investment’s future value in terms of      purchasing power?
  3. What      would be the investment’s future value in terms of purchasing power if      inflation occurs at a 9 percent annual rate?

5 Find the present value of $7,000 to be received one year from now, assuming a 3 percent annual discount interest rate. Also calculate the present value if the $7,000 is received after two years.

7 Determine the present value if $15,000 is to be received at the end of eight years and the discount rate is 9 percent. How would your answer change if you had to wait six years to receive the $15,000?

16 Use a financial calculator or computer software program to answer the following questions:

  1. What      would be the future value of $15,555 invested now if it earns interest at      14.5 percent for seven years?
  2. What      would be the future value of $19,378 invested now if the money remains      deposited for eight years and the annual interest rate is 18 percent?

17 Use a financial calculator or computer software program to answer the following questions:

  1. What      is the present value of $359,000 that is to be received at the end of 23      years if the discount rate is 11 percent?
  2. How      would your answer change in (a) if the $359,000 is to be received at the      end of 20 years?

19 Use a financial calculator or computer software program to answer the following questions.

  1. What      would be the future value of $19,378 invested now if the money remains      deposited for eight years, the annual interest rate is 18 percent, and      interest on the investment is compounded semi-annually?

Are you looking for a similar paper or any other quality academic essay? Then look no further. Our research paper writing service is what you require. Our team of experienced writers is on standby to deliver to you an original paper as per your specified instructions with zero plagiarism guaranteed. This is the perfect way you can prepare your own unique academic paper and score the grades you deserve.

Use the order calculator below and get ordering with idealtermpapers.com now! Contact our live support team for any assistance or inquiry.

Type of paper Academic level Subject area
Number of pages Paper urgency Cost per page:
 Total:

Purchase Guarantee

Why ORDER at IdealTermPapers.com?

  • Educated and experienced writers.
  • Quality, Professionalism and experience.
  • Original Content writing.
  • Best customer support.
  • Affordable Pricing on orders.
  • Thorough research.
  • Ontime delivery of finished work.
  • 100% plagiarism free papers.

Reasonable Prices

  • To get the best quality papers isn’t cheap so don’t trust extremely low prices.
  • We can’t claim that we have unreasonably low prices because low prices equal to low quality.
  • Our prices are good and they balance with the quality of our work.
  • We have a Moneyback guarantee.

Original and Quality work

  • Our writers are professionals and they write your paper from scratch and we don’t encourage copy pasting.
  • All writers are assessed and they have to pass our standards for them to work with us.
  • Plagiarism is an offence and it’s never tolerated in our company.

Native Writers plus Researchers

  • Our writers are qualified and excellent and will guarantee the best performance in your order.
  • Our team has writers who have master's and PhD qualifications who can handle any assignment
  • We have the best standards in essay writing.

We have been in business for over 7 syears

  • We have always served our customers from all over the world and they have continued to order with us.
  • We value our customers since they have trusted us to do their assignments.
  • We are competent in our writing gained from experience over the years
  • Our company has 24/7 Live Support.

You will get

  •  Custom Admission Essay written by competent professional English writers.
  •  Free revisions according to our revision policy if required
  •  Paper format:  275 words per page, Times New Roman font and size 12, doublespaced text and1 inch margin
  •  On time delivery and direct order download
  •  Privacy guaranteed

We can help you:

  •  acquire a comprehensive professional presentation.
  •  get a unique and remarkable content as per your instructions.
  •  Get an additional portion that can be included to your existing presentation;
  •  turn your work in to an eyecatching presentation with well communicated ideas.
  •  improve your presentation to acquire the best professional standards.