You are given the principal, the annual interest rate, and the compounding period. Determine the value...
Changing compounding frequency Using annual, semiannual, and quarterly compounding periods, (1) calculate the future value if $6,000 is deposited initially at 11% annual interest for 7 years, and (2) determine the effective annual rate (EAR) Annual Compounding (1) The future value, Vn, is (Round to the nearest cent.) 2) If the 11% annual nominal rate is compounded annually the EAR is 96 Round to two decimal places Semiannual Compounding (1) The future value, Vn, is (Round to the nearest cent.)...
Changing compounding frequency Using annual, semiannual, and quarterly compounding periods, (1) calculate the future value if $4,000 is deposited initially at 1 1% annual interest for 6 years, and (2) determine the effective annual rate (EAR) (1) The future value, FVn is (Round to the nearest cent) (2 If the 11% annual nominal rate is compounded annually, the EAR is 96 Round to two decimal places. (1) The future value, FVn, is S(Round to the nearest cent.) (2) If the...
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...
Time 13. Calculate the total interest earned for the investment below. Principal Rate of Compound Compounding Interest per Year Period $8200 2.8% quarterly 15 years
a. (Related to Checkpoint 5.2) (Compound interest with non-annual periods) You just received a bonus of $4,000 Calculate the future value of $4,000, given that it will be held in the bank for 10 years and earn an annual interest rate of 7 percent. b. Recalculate part (a) using a compounding period that is (1) semiannual and (2) bimonthly c. Recalculate parts (a) and (b) using an annual interest rate of 14 percent. d. Recalculate part (a) using a time...
Determine the effective annual yield for each investment. Then select the better investment. Assume 360 days in a year. 11% compounded monthly: 11.25% compounded annually %. The effective annual yield for a 11% compounded monthly investment is (Round to two decimal places as needed.) Determine the effective annual yield for each investment. Then select the better investment. Assume 360 days in a year. 3% compounded semiannually; 2.9% compounded daily %. The effective annual yield for a 3% compounded semiannually investment...
An investment earns interest, compounded semi-annually, for 30 compounding periods. For how long is the principal invested? Ap('tight O 7.5 years O 15 years O 30 years O 15 months Question 10 (1 point) An investment offers 8% annual interest, compounded quarterly. What is the interest rate per compounding period? O8% OOO А в PCts hя + A=P(l+ilux A= lood tih
solve it and explain how and why, in words please.
2. If the interest rate is 2% per month, what is the time period (TP)? what is the compounding Z period (CP)? Is this a nominal rate or an effective rate? What is the nominal quarterly rate? What is the nominal annual rate?
2. If the interest rate is 2% per month, what is the time period (TP)? what is the compounding Z period (CP)? Is this a nominal rate...
For the following investment, find the total number of compounding periods (n) and the interest rate per period (i) that you would substitute into the future value or present value formula . (Do not round.) Rate per period (in decimal form) Annual Rate Compounding periods Compounded Daily Time 4 years 1.825%
For the following investment, find the total number of compounding periods (n) and the interest rate per period (i) that you would substitute into the future value or present value formula. (Do not round.) Time 12 years Annual Rate 1.5% Compounded Monthly Rate per period (in decimal form) Compounding periods