Q1
Return to a What effective interest rate per month, compounded continuously, is equivalent to a nominal rate of 10% per year?
The effective interest rate per month is _______ %
Q2
Environmental recovery company RexChem Partners plans to finance a site reclamation project that will require a 4-year cleanup period. If the company borrows $4.1 million now, how much will the company have to get at the end of each quarter in order to earn 15% per year, compounded weekly on its investment? Calculate the answer using both formula and spreadsheet function?
In order to earn 15% per year compounded weekly on its investment at the end of each quarter, the company will have to get $ _______ .
1. Effective Annual Rate = 10%
Effective rate continuously compounded = eln(1+r) -
1
ln(1.1) = 0.09531018
Montly rate = 0.09531018/12 = 0.07942515
e0.07942515 -1 = 0.00797414
Hence, monthly continuous rate = 0.797414%
2. Effective Quarterly rate = (1+(Rate per year/52))Number
of weeks =(1+Rate per quarter)4,
(1+(0.15/52))208=(1+r)4,
r = 16.1583394% per quarter
Now, using the PMT function in excel,
=PMT(16.1583394%,16,-4100000)
7,28,839.57883 |
per quarter.
Environmental recovery company RexChem Partners plans to finance a site reclamation project
Environmental recovery company RexChem Partners plans to fi nance a site reclamation project that will require a 4-year cleanup period. The company plans to borrow $3.6 million now. How much will the company have to get in a lump-sum payment when the project is over in order to earn 12% per year, compounded semiannually, on its investment?
Question 1 (5 Points) 1. The following table shows examples of interest statements. Interpret those statements by filing the table. Nominal or Effective Interest | Compounding Period Interest Rate Statement 15% per year compounded monthly 15% per year Effective 15% per year compounded monthly 20% per year compounded quarterly Nominal 2% per month compounded weekly 2% per month 2% per month compounded monthly Effective 6% per quarter Effective 2% per month compounded daily 1% per week compounded continuously
I need 17-30!! Calculate the yearly interest rate if an investment is paid 1.75% interest every two months 17 2.18 Calculate the interest rate per interest period if the yearly interest rate is 13% and the number of interest periods per year is three. 2.19 Calculate the number of interest periods per year if the yearly interest rate is 15% and the interest rate per interest period is 2.5% 2.20 Calculate the yearly interest rate if there are 12 interest...
Step by step solution needed for all parts of the question and each part with answers thanks ☺ A mining company considers opening a new excavation site. The project requires an investment of £25 million at the outset, followed by £17 million in 15 months' time. It is expected that the new site will provide income over a 30 year period starting from the end of the second year. Net income from the project will be received continuously at a...
Brady and Sons uses accounts receivable as collateral to borrow money for operations and payroll when revenues are low. If the company borrows $300,000 now at an interest rate of 12% per year compounded monthly and the rate increases to 15% per year compounded weekly after 7 months, how much will the company owe at the end of one year? At the end of the year, the company will owe $ 341,773.67 isn't correct .
In an effort to save money for early retirement, an environmental engineering colleague plans to deposit $1,100 per month, starting one month from now, into a fixed rate account that pays 8% per year compounded quarterly. How much will be in the account at the end of 17 years? At the end of 17 years, the account will be$
In an effort to save money for early retirement, an environmental engineering colleague plans to deposit $1,300 per month, starting one month from now, into a fixed rate account that pays 8% per year compounded quarterly. How much will be in the account at the end of 20 years? a) At the end of 20 years, the account will be $
In an effort to save money for early retirement, an environmental engineering colleague plans to deposit $8400 per month, starting one month from now, into a fixed account that pays 8% per year compounded quarterly. How much will be in the account at the end of 17 years? Assume no inter-period interest earned
In an effort to save money for early retirement, an environmental engineering colleague plans to deposit $4600 per month, starting one month from now, into a fixed account that pays 4% per year compounded quarterly. How much will be in the account at the end of 7 years? Assume no inter-period interest earned
In an effort to save money for early retirement, an environmental engineering colleague plans to deposit $2,000 per month, starting one month from now, into a fixed rate account that pays 8% per year compounded semi-annually. How much will be in the account at the end of 20 years? At the end of 20 years, the account will be $