What are main reasons that lenders charge interest on loans

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1. What are the main reasons that lenders charge interest on loans?

2. Give an example of a financial transaction that requires a payment in the future.

3. If you deposit $1,000 in a bank CD that pays interest of 3% per year, how much will you have after two years?

4. What is the present value of $1,200 to be received in one year if the interest rate is 10%?

Reference no: EM131305592

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