Problem 1) Using the Rule of 72, how much would $5,000 accumalte to after 27 years if the rate of return is 8% ?
Problem 2:
a) What woudl the value of a $1000 face value bond with a stated interest rate of 9% return and a 10 year life ?
b) if the intrest rate increased to 10%, what would be the present value of the bond in A.
c) if the interst rate decreased to 6% what would be the present value of the bond in A ?