need help with both parts of question one. Thanks
a. Value= $2,805,535.09
b. Value= $2,626,923.04
need help with both parts of question one. Thanks 1. On the last day of every...
need help with all parts of question 2. Thanks 2. Sarah wishes to accumulate $25,000 by means of monthly deposits earning interest at nominal annual rate 8% compounded quarterly. The regular deposits will be $100 each. Find the mumber of regular deposits required. 2pts If the additional fractional deposit is made at the time of the last regular deposit, find the addi tional fractional deposit amount. [2ts If the additional fractional deposit is made one month after the last regular...
3. Nonannual compounding period The number of compounding periods in one year is called compounding frequency. The compounding frequency affects both the present and future values of cash flows An investor can invest money with a particular bank and earn a stated interest rate of 13.20%; 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 You want to invest $19,000 and...
Bank A pays 8% interest, compounded quarterly, on its money market account. The managers of bank B want its money market account’s effective annual rate to equal that of Bank A, but Bank B will compound interest on a monthly basis. What nominal, or quoted, rate must bank B set?
You deposit $3,000 at the end of the year (k = 0) into an account that pays interest at a rate of 7% compounded annually. A year after your deposit, the savings account interest rate changes to 1 2% nominal interest compounded month y Five years after ur de o the savings account aga changes it interest rate this time e interest rate becomes 8% nominal interest compounded quarterly. Eight years after your deposit, the saving account changes its rate...
(1 point) An annuity-immediate makes payments of 200 per year payable quarterly for 8 years at an effective annual interest rate i = 3%. The accumulated value of this annuity is AV = (1 point) An annuity makes payments of 1700 at the end of every 9 years over 81 years at a nominal annual interest rate of 5.6% compounded quarterly. The present value of this annuity is PV =
Need help, please show work for solutions. 1.) An investor just invested $10,000 in an investment that is expected to earn a 6% interest rate. Assuming the 6% annual return is realized, what will be the value of the investment at the end of 25 years? 2.) If you deposit $45,000 into a 5-year CD today earning 4% interest compounded quarterly, what would be the account balance be at the end of 5 years? 3.) A 22-year old college student...
TOPC. X51) If an investor buys a 39-week T-bill with a maturity value of $25,000 for $23,543 what annual interest rate (annual yield) will the investor earn? (Express your answer as a percentage, correct to one decimal place.) *52) An investment company pays 7% compounded quarterly. What is the effective rate? (Compute the answer to two decimal places). 53) How much should you invest now at 6% compounded semiannually to have $8,500 to bu a car in 2.5 years? ve...
*1.2.18 Smith receives a paycheck of 3500 on the last day of each month, and immediately deposits all but 1000 of it in a bank account. The first deposit is on December 31, 2017. Smith deposits an addition- al 1000 on the 15ª of every month. The account pays an annual in- terest rate of 10%. Find the balance in the account on March 31. 2018, after the deposit is made and interest is credited, in each of the following...
Question 1 0.2 pts Ethel makes a deposit of $103 into her retirement account every month for 21 years. Her bank pays a nominal annual rate of 8% compounded monthly. How much will Ethel have in her account at the end of 21 years?
Attention: Due to a bug in Google Chrome, this page may not function correctly. Click here to learn more. 18. Nonannual compounding period Aa Aa E The number of compounding periods in one year is called compounding frequency. The compounding frequency affects both the present and future values of cash flows. An investor can invest money with a particular bank and earn a stated interest rate of 6.60%; however, interest will be compounded quarterly. What are the nominal, periodic, and...