Using the Compound Interest Tables, Answer Each of the Following $\$ 100,000$

question 88

Essay

Using the compound interest tables, answer each of the following questions.
Required: a. Assuming that $\$ 100,000$ to be paid at the end of ten years has a present value today of $\$ 50,834.90$ , what interest rate compounded annually is used in the calculation of the present value?
b. What amount must be deposited today if $\$ 200,000$ is to be accumulated six years from today, and interest at $12 \%$ is compounded semiannually?

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Definitions:

Communication Apprehension

Fear or anxiety associated with either real or anticipated communication with other people.

Looking-Glass Self

Concept that people learn who they are by their interactions with others, who reflect their self back to them.

Social Decentering

The cognitive ability to step outside one's own perspective and consider the thoughts, feelings, and motives of others.

Symbolic Interaction Theory

A sociological perspective that focuses on the meanings individuals attach to objects, events, and behaviors, emphasizing the role of communication in shaping social reality.