An initial amount of $300 accumulates to $381.25 after 6 years at a nominal rate of discount payable 4 times per year. The equivalent effective annual rate of interest is denoted i. Compute the accumulated value of $1000 invested for 30 months at a rate of simple interest of i per annum.
An initial amount of $300 accumulates to $381.25 after 6 years at a nominal rate of...
1) Investment X for 100,000 is invested at a nominal rate of interest, j, convertible semi-annually. After four years, it accumulates to 214,358.88. Investment Y for 100,000 is invested at a nominal rate of discount, k, convertible quarterly. After two years, it accumulates to 232,305.73. Investment Z for 100,000 is invested at an annual effective rate of interest equal to j in year one and an annual effective rate of discount equal to k in year two. Calculate the value...
Find the accumulated value of $4000 at the end of 5 years if the nominal rate of interest is 4% compounded quarterly for first 1.5 years, the effective (annual) rate of discount is 7% for the next 9 months, the nominal rate of discount is 6% compounded monthly for the next year, and the annual effective interest rate is 5% for the last 21 months. 1. Ir.c 1. A payment of SX three years from now along with a payment...
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?
Suppose you receive $100 at the end of each year for the next three years. If the interest rate is 5% per annum (interest paid annually), calculate the effective 3 years rate (total interest over 3 years). Hint: EFFECT function is not appropriate for this part as it is often used to compute an effective annual interest rate from a nominal interest rate.Is there a specific excel formula to count it?
its all one big question. Find the equivalent interest rates to the given nominal interest rates. a. Nominal interest rate compounded quarterly that is equivalent to an effective interest rate of 7.5% 0.00 % Round to two decimal places b. Nominal interest rate compounded monthly that is equivalent to 8% compounded quarterly 0.00 % Round to two decimal places c. Nominal interest rate compounded monthly that is equivalent to 6.5% compounded annually 0.00 % Round to two decimal places Brian...
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.
Question 3 If money is invested for 3 years, the per annum simple interest rate equivalent to a nominal rate of 12.5%p.a compounding monthly is (as a percentage rounded to three decimal places; don’t use % sign):
1. Calculate the real interest rate per annum using the full Fisher equation if the nominal interest rate is 6% per annum and the inflation rate is 2% per annum. A. 3.92% B. 4.00% C. 8.00% D. 8.12% 5. Calculate the simple interest rate per to a nominal interest rate of 4% compounded monthly over a 24 period. A. 3.33% B. 4.00% C. 4.16% D. 6.67% 6. Michael made a deposit of $13,000 exactly 5 years ago into an account...
HW#3 EE401 Calculate the interest and total amount due at the end of the loan for both simple and compound interest. Loan (a) $ 1000 (6) $ 1500 (c) $10,000 (d) $25,000 (e) $47,750 Years Rate 2 5% 5 6% 10 10% 15 15% 20 20% The following cash flows are equivalent in value if the interest rate is i. Which one is more valuable if the interest rate is 2i? (1) 0— 1— 2 (i) 0— 1— 273 3....
use matlab love you 8.7 If an amount of money A is invested for k years at a nominal annual interest rate r (expressed as a decimal fraction), the value V of the in vestment after k years is given by V Ar/n where n is the number of compounding periods per year. Write a pro gram to compute V as n gets larger and larger, i.e. as the compounding periods become more and more frequent, like monthly, daily, hourly...