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28. Present Value What is the present value of a $200 payment made in 3 years when the
discount rate is 8 percent?
29. Rule of 72 Approximately how many years does it take to double a $300 investment when
interest rates are 8 percent per year?
30. Rule of 72 Approximately how many years does it take to double a $500 investment when
interest rates are 4 percent per year?
31. Rule of 72 Approximately how many years does it take to double a $600 investment when
interest rates are 6 percent per year?
32. Rule of 72 Approximately what interest rate is needed to double an investment over six
years?
33. Rule of 72 Approximately what interest rate is needed to double an investment over four
years?
34. Rule of 72 Approximately what interest rate is needed to double an investment over eight
years?
35. Rates over One Year Determine the interest rate earned on a $1,500 deposit when
$1,680 is paid back in one year.
36. Rates over One Year Determine the interest rate earned on a $500 deposit when $650 is
paid back in one year.
37. Rates over One Year Determine the interest rate earned on a $450 deposit when $475 is
paid back in one year.
38. Interest-on-Interest Consider a $1,000 deposit earning 7 percent interest per year for
four years. How much total interest is earned on the original deposit (excluding interest earned
on interest)?
39. Interest-on-Interest Consider a $2,000 deposit earning 6 percent interest per year for
five years. How much total interest is earned on the original deposit (excluding interest earned on
interest)?
40. Interest-on-Interest Consider a $500 deposit earning 5 percent interest per year for five
years. How much total interest is earned on the original deposit (excluding interest earned on
interest)?
41. Interest-on-Interest Consider a $200 deposit earning 8 percent interest per year for
three years. How much total interest is earned on interest (excluding interest earned on the
original deposit)?
42. Moving Cash Flows What is the value in year 3 of a $500 cash flow made in year 5 when
interest rates are 6 percent?
43. Moving Cash Flows What is the value in year 5 of a $600 cash flow made in year 10
when interest rates are 5 percent?
44. Moving Cash Flows What is the value in year 3 of a $250 cash flow made in year 15
when interest rates are 12 percent?
45. Moving Cash Flows What is the value in year 7 of a $700 cash flow made in year 3 when
the interest rates are 10 percent?
46. Moving Cash Flows What is the value in year 6 of a $900 cash flow made in year 4 when
the interest rates are 8 percent?
47. Moving Cash Flows What is the value in year 15 of a $600 cash flow made in year 3
when the interest rates are 4 percent?
