Question: Calculating Future Values. What is the future value of $3,100 in 17 years assuming an interest rate of 8.4 percent compounded semiannually? Calculating APR. Elliott

  1. Calculating Future Values. What is the future value of $3,100 in 17 years assuming an interest rate of 8.4 percent compounded semiannually?
  2. Calculating APR. Elliott Credit Corp. wants to earn an effective annual return on its consumer loans of 17.1 percent per year. The bank uses daily compounding on its loans. What interest rate is the bank required by law to report to potential borrowers? Explain why this rate is misleading to an uninformed borrower.
  3. Calculating Annuity Cash Flows. If you put up $41,000 today in exchange for a 5.1 percent, 15-year annuity, what will the annual cash flow be?

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