1. The amount of a loan is $ 15,000 that expires in 12 months at a rate of 16%, Calculate its value considering each case independently
a) The present day
b) one year and 26 days
c) 8 months
d) 5 months and 18 days
e)15 months.
2. You are considering the following investments:
A. Bank A promises to pay 8% on your deposit compounded annually.
B. Bank B promises to pay 8% on your deposit compounded daily.
C. Bank C promises to pay 8% on your deposit compounded continuously.
How much will you have in ten years if you invested $200 in each of these accounts today?