Problem 3.11 – Banks & Good Credit
Fundamentals of Corporate Finance
Berk, DeMarzo, and Harford
05th Edition
Given the loan and two interest rates…. determine how much you will save in interest this year.
Given the loan and two interest rates…. determine how much you will save in interest this year.
How much would you have, and how much money could you borrow today. Then decide if you should borrow from your friend or the bank.
Given a discount factor, find the discount rate.
Given the cost of today and in one year with the interest rate… determine the true cost of the TV today.
Having some money today is equivalent to having some money later.
Given the savings bond amount, years, and interest rate… determine what you’d pay today for the bond.
Given the interest rate, cash deposited, and years… determine your bank balance in given years.
Given the investment, interest per year, and time passed… – find the balance in the account and the amount that corresponds.
Determine the future value of some money at various interest rates.
Determine the present value of an amount of money at various interest rates.