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# . Who are the suppliers of loanable funds? 2. Who are the demanders of loanable funds?

. Who are the suppliers of loanable funds?

2. Who are the demanders of loanable funds?

18 Calculate the present value of \$5,000 received five years from today if your investments pay
A.6 percent compounded annually
B.8 percent compounded annually
C.10 percent compounded annually
D.10 percent compounded semiannually
E10 percent compounded quarterly

What do your answers to these questions tell you about the relation between present values and interest rates and between present values and the number of compounding periods per year?

19) Calculate the future value in five years of \$5,000 received today if your investments pay a. 6 percent compounded annually
b 8 percent compounded annually
c. 10 percent compounded annually
d. 10 percent compounded semiannually
e. 10 percent compounded quarterly
What do your answers to these questions tell you about the relation between future values and interest rates and between future values and the number of compounding periods per year?

26. Compute the future values of the following first assuming that payments are made on the last day of the period and then assuming payments are made on the first day of the period: (LG 2-9)

Payment Years Interest Rate
\$123 13 13%
4,555 8 8
74484 5 10
167332 9 1

Here is the explanation for... View the full answer

Who are the suppliers of loanable funds? On the left side, the suppliers of funds (savers) include households, and entities. Household supplies by way of savings made into the bank and also they...

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