rate of 10% per year? (Simple Interest vs. Compound Interest) Compound
interest=$1,210,000, simple interest = 100,000 first year and 110,000 second year
2. For a company that uses a year as its interest period, determine the net cash flow that
will be recorded at the end of the year from the cash flows shown.
Receipts,
Disbursements,
Month
$1000
$1000
Jan
500
300
Feb
800
500
Mar
200
400
Apr
120
400
May
600
500
June
900
600
July
800
300
Aug
700
300
Sept
900
500
Oct
500
400
Nov
400
400
Dec
1800
700
3. At an interest rate of 10% per year, the equivalent amount of $250,000 after one year is
going to be?