in = i / [1 + i(n - 1)]
0.025 = 0.04 / [1 + 0.04(n - 1)]
0.025(1 + 0.04n - 0.04) = 0.04
0.96 + 0.04n = 1.6
0.04n = 0.64
n = 16
11) Simple interest of i-4% is being credited to a fund. In which period is this...
Simple interest rate of 4% is being credited to a fund. In which period is it equivalent to an effective rate of 2%? Find ?[3,6] .
4. Jeff deposits X into a fund today and 100 fifteen years later. Interest is credited at a nominal annual discount rate of 4.5% compounded quarterly for the first 10 years, and at a nominal annual interest rate of 6% compounded semiannually thereafter. The accumulated balance in the fund at the end of 30 years is 400. Calculate X. Give your answer rounded to the nearest whole number. Answer:
4. Jeff deposits X into a fund today and 100 fifteen years later. Interest is credited at a nominal annual discount rate of 4.5% compounded quarterly for the first 10 years, and at a nominal annual interest rate of 6% compounded semiannually thereafter. The accumulated balance in the fund at the end of 30 years is 400. Calculate X. Give your answer rounded to the nearest whole number. Answer:
Please show work
11. 8 What compound interest rate, j, is equivalent 6% the first year, followed by a simple discount rate of 8% for the next 2 years? 3-year period to a simple interest rate of over a
11. 8 What compound interest rate, j, is equivalent 6% the first year, followed by a simple discount rate of 8% for the next 2 years? 3-year period to a simple interest rate of over a
Gloria deposited $100 into a fund and $200 ten years later. Interest is credited at a nominal discount rate of d compounded quarterly for the first 10 years, and at a nominal interest rate of 5% compounded quarterly thereafter. The accumulated balance in the fund at the end of 25 years is $1000. Calculate d.
Which of the following is TRUE about simple interest? A. We never use simple interest rates in financial calculations. B. If we have an effective annual rate (EAR) of return for 3 years, we can just divide the EAR by 3 to get the equivalent annual simple rate of return. C. Simple interest does not allow for any interest-on-interest. D. Both B and C are correct.
It is given that Fund A earns simple interest at the rate of 5% per year whereas Fund B earns an annual effective rate of interest of 4%. At what time (measured from the date of deposit) do the two funds have the same accumulated value? Use the Newton Raphson iteration method with an initial guess t = 20.
$5,000 8% APR 3 simple interest 4 4 years Period 0 (start of investment) Periodic Interest Balance Total Interest $ $5,000 $ Period 0 (start of investment) 9 $5,000 10 8% APR 11 Annual compounding 12 4 years Periodic Interest Balance $ $5,000 Total Interest $ Period 0 (start of investment) Periodic Interest Balance $ $5,000 Total Interest $ - 17 $5,000 18 8% APR 19 Twice yearly compounding 20 4 years
3. A scholarship fund is started on January 1, 2015 with an initial deposit of of $100,000 in an account earning i(2) = 0.08, with interest credited every June 30 and Dec 31. Every Jan. 1 from 2016 on, the fund will receive a deposit of $5,000. The scholarship fund makes payments to recipients totaling $12,000 every July 1, starting in 2015. What amount is in the scholarship account just after the $5,000 deposit is made on Jan 1, 2025?...
What simple interest rate, compounded quarterly, is equivalent to a 8.70% effective interest rate? (Note: present your answer in percentage form with 2 decimal places) show steps, be clear, will rate