I have question about the following questions:
Question #1:
If you were able to invest only $1200 at the end of each quarter and placed it in a vehicle that producedan average annual return of 6% compounded quarterly, how much would you receive in 10 years?
My question is: Should I use the Future Value or Present Value formula for calculating the answer?
Question #2:
Matt borrowed $9000 for 150 days from Lee Bank. The bank discounted the note at 7%. What proceeds does Matt receive?
My question is: there is no discounted date given, what should I do? To make one up?
Please feel free to share your opinion.
Thanks so much!
Question #1:
If you were able to invest only $1200 at the end of each quarter and placed it in a vehicle that producedan average annual return of 6% compounded quarterly, how much would you receive in 10 years?
My question is: Should I use the Future Value or Present Value formula for calculating the answer?
Question #2:
Matt borrowed $9000 for 150 days from Lee Bank. The bank discounted the note at 7%. What proceeds does Matt receive?
My question is: there is no discounted date given, what should I do? To make one up?
Please feel free to share your opinion.
Thanks so much!