Time-Value of Money (Show Formulas)
The LPD company has a $10,000 note receivable from a customer due in three years.
a) How much is the note worth today if the interest rate is 9%?
b) What interest rate is implied if you buy a TV for $750 and pay in monthly installments of $66.64 for one year? Compute the APR and the effective annual rate.
c) At what rate of interest does the money double in 5-years?