Annual interest rate compounded annually

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Reference no: EM131813750

1. How many years will it take $119,000 to grow to $210,000 at 2.3% annual interest (compounded annually) if interest only accrues at the end of the year?

2. "Your rich uncle died. His will states that you will receive 2 payments of $49,000 each year. The first payment will occur exactly one year from now. Your cousin offers to purchase your two payments of $49,000. With a 13.9% annual interest rate compounded annually, what is the minimum price that you should sell your two payments for right now? "

Reference no: EM131813750

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