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] .
The effective rate of interest in simple interest is:
0.02 = 0.04 / [1 + 0.04(t - 1)]
0.02(1 + 0.04t - 0.04) = 0.04
0.96 + 0.04t = 2
0.04t = 1.04
t = 26 periods
Simple interest rate of 4% is being credited to a fund. In which period is it...
11) Simple interest of i-4% is being credited to a fund. In which period is this equivalent to an effective rate of 2 1/2%?
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:
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.
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.
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.
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
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
A loan is made for five years at a simple interest rate of 12% per annum. What is the equivalent annual effective rate of discount during the fourth year of the loan?
Find the interest rate needed for the sinking fund to reach the required amount. Assume that the compounding period is the same as the payment period. $30,000 to be accumulated in 9 years; annual payments of $2488 % The interest rate needed is approximately (Round to two decimal places as needed.)
Find the interest rate needed for the sinking fund to reach the required amount. Assume that the compounding period is the same as the payment period. $30,000 to be...