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Attempts: ttention: Due to a bug in Google Chrome, this page may not function correctly. Click here to learn more. 13. Semiannual and other compounding periods Semiannual compounding implies that interest is compounded 2 times per year. Score: /2 Aa Aa You have deposited $96,780 into an account that will earn an interest rate of 15% compounded semiannually. How much will you have in this account at the end of 14 years? O $733,200.27 $684,786.80 O $879,840.32 O $586,560.22An investor can invest money with a particular bank and earn a stated interest rate of 15.40%; however, interest will be compounded quarterly. What are the nominal, periodic, and effective interest rates for this investment opportunity? Interest Rates Nominal rate Periodic rate Effective annual rate 15.40% 3.85% 16.31% | Rahul needs a loan and is speaking to several lending agencies about the interest rates they would charge and the terms they offer. He particularly likes his local bank because he is being offered a nominal rate of 14%. But the bank is compounding quarterly. What is the effective interest rate that Rahul would pay for the loan? o 14.658% o 14.752% O 14.630% 0 14.837% Another bank is also offering favorable terms, so Rahul decides to take a loan of $12,000 from this bank. He signs the loan contract at 10% compounded daily for six months. Based on a 365-day year, what is the total amount that Rahul owes the bank at the end of the loans term? (Hint: To calculate the number of days, divide the number of months by 12 and multiply by 365.) O $13,056.70 O $13,372.08 O $12,236.71 O $12,615.17

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File Home nert Page Layout Formulas Data Review View dd-Ins Cut E AutoSum Calibri ー E ゴWrap Text General ta copy ▼ в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 C Paste Conditional Format CeInsert Delete Format Formatting as Table Styles2 Clear Sort &Find & Format Painter Clipboard Font Alignment Number Styles Cells Edting DF177 DE DF DG DH DI DJ DK DL DM 163 164 165 166 167 168 169 170 EXCEL DEPOSIT YEARS RATE 96780 1596 SEMI ANNUAL FUTURE VALUE $7,33,200.27 EXCEL-FV(15%/2,14*2,,-96780) OR 172 173 174 175 176 FORMULA FUTURE VALUE PV (1+r/m)Amn FUTURE VALUE 96780 (1+0.15/2)A(2 14) FUTURE VALUE- m= 2 SEMI ANNUAL 733200.27 178 179 180 181 44M C CALCULATOR LOAN OP BOX DILUTION DOLLAR COST AVGMORTGAGE EXPO Sheeti Sheet2 Shel 福 130% TIONS pv, fv, annuity CAP STRU VALUE rences: x261 08:18 08-01-2019File Home nert Page Layout Formulas Data Review View dd-Ins Cut Σ AutoSum Calibri ー E ゴWrap Text General aCopy в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 Conditional Format eCell Insert Delete Format Paste Sort &Find & 2 ClearFe Select Editing Format Painter Formatting, as Table w styles. Styles ▼ ㆆ ▼ Clipboard Font Alignment Number Cells DF190 DE DF DG DH DI DI DK DL DM 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 44M CALCULATOR LOAN OPTIONS pv, fv, annuity CAP STRU VALUE STATED NOMINAL RATE (r) PERIODIC RATE EFFECTIVE ANNUAL RATE 15.40% QUARTERLY COMPOUNDING FORMULA 3.85% (15.40%/4) 16.31% [-(1 + 15.40%/4)^4-1 ] r/m , m = 4 = QUARTERLY COMPOUNDING (1 +r/m)^m-1 NOMINAL RATE EFFECTIVE ANNUAL RATE 14% QUARTERLY COMPOUNDING 14.75296 [-(1 + 14%/4)^4-1 ] LOAN RATE TOTAL AMOUNT TO BE PAID 12000 1096 COMPOUNDED DAILY 12615.17 12000*(1+0.10/365)시6/12*365) BOX DILUTION DOLLAR COST AVGMORTGAGE EXPO Sheeti Sheet2 Shel 福 130% rences: x261 08:26 08-01-2019

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