Please answer C and D. If a nominal interest rate of 8% is compounded continuously, determine...
ANSWERS A AND B ARE CORRECT. I need answers to C and D. This is my second time posting this question and getting wrong answers on here. Please don't solve unless answer is correct. Thanks. If a nominal interest rate of 8% is compounded continuously, determine the unknown quantity in each of the following situations: a. What uniform EOY amount for 9 years is equivalent to $7,000 at EOY 9? b. What is the present equivalent value of $900 per...
You are making $500 monthly deposits into a savings account that pays interest at a nominal rate of 6% per year, compounded monthly. What is the future equivalent value of this account after six years? The future equivalent value of this account after six years is $0 (Round to the nearest dollar.)
2. For the following annuity due, determine the nominal annual rate of interest. Future Value Term Present Value Periodic Rent Payment Period Conversion Period monthly $2,581 $540 1 year 4 years %. The nominal annual rate of interest is (Round to two decimal places as needed.) 3. A company borrowed $13,000 paying interest at 8% compounded quarterly. If the loan is repaid by payments of $1800 made at the end of each 3 months, construct a partial amortization schedule showing...
4. Find the effective bimonthly interest rate equivalent to: (a) nominal annual interest of 9%, compounded 6 times per year; (b) nominal annual discount of 6%, compounded quarterly; (c) 1/2 nominal annual interest of 8%, compounded continuously.
a. For an interest rate of 100% per year compounded continuously, calculate the effective daily, weekly, monthly, quarterly, semiannually, and annually interest rates. b. An investor requires an effective return of at least 12% per year. What is the minimum annual nominal rate that is acceptable for continuous compounding?
2. What nominal annual interest rate compounded monthly is equivalent to an effective annual interest rate of 8% per year for the first 10 years followed by a nominal annual interest rate of 5% compounded daily for the second 10 years? Give your answer as a percent rounded to three decimal places. Answer:
What effective interest rate per year, compounded continuously, is equivalent to a nominal rate of 15% per year? Express your answer as a %.
For an APR of 9% per year, if the interest is compounded daily, determine the nominal rate per (a) 6 months and (b) 2 years. The nominal interest rate per 6 months is 1%. The nominal interest rate per 2 years is L %.
In lecture, Professor Gruber explained discrete compounding interest. Interest can also be compounded continuously. Here we explain the difference. Professor Gruber calculated future value as FV = P(1+r)", where P is the principal, r is the interest rate, and t is the term of the contract (often in years). This formula can be generalized to FV = P(1+r/m)mt, where m is the number of compounding periods per year (in lecture, this was 1). That is, after every compounding period, more...
What effective interest rate per week, compounded continuously, is equivalent to a nominal rate of 10% per year? The effective interest rate per week is ______%. It wasn't 10.52%, 10.517%, 10.506%, 10.51%, 10.37%.