If we receive $100 per month for the next 100 months, how much is that worth? Is it a deal to pay $10 000 for that priviledge?
Alex invested $1000 at 10% annual interest, compounded annually.
Brian invested $2000 at 5% annual interest, compounded annually.
After 2 years, how much more interest did Alex earn than Brian?
You can choose between 2 payment plans:
1) 78 weekly worry-free payments of $29.99 each week, starting today.
2) A one-time payment of $829.00 due in 90 days.
Assuming that you want to buy this phone, what is the minimum (positive) daily interest rate that would make a person be indifferent between these payment plans?
10-year treasuries are currently yielding 3%. ABC issued a new 10-year bond with a A+ rating, and it has a 6% yield. What is the implied probability of ABC defaulting on the bond?