# Answer to Question #233736 in Civil and Environmental Engineering for Alan Enrico V Tuib

Question #233736
Situation 1
b) If $100 at Time “0” will be worth$110 a year later and was $90 a year ago, compute the interest rate for the past year and the interest rate next year. c) Assume that$90 invested a year ago will return $110 a year from now. What is the annual interest rate in this situation? 1 Expert's answer 2021-09-10T00:03:49-0400 ﻿(b) • Taking the case from 90$ to 100$in a year rate of interest per anum (annually),where A=amount and P= principal • Taking the next case from 100$ to 110$in a year rate of interest per anum (annually) (c) • Investment was made a year ago and return was obtained a year from now so it means 2 successive years .i.e. T=2 years • Assuming it to be compounded annually from 90$ to 110\$

,where n=no of times it is compounded annually, t= no of years

, because

• Assuming it to be simple interest

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