1, Compute the effective rate of interest (APY) if the stated rate is 5% per year,...
4. Find the effective interest rate corresponding to the following stated rates: (a) 5% per year, compounded quarterly. (b) 5% per year, compounded daily. 4. Find the effective interest rate corresponding to the following stated rates: (a) 5% per year, compounded quarterly. (b) 5% per year, compounded daily.
(1 point) Suppose you invest $18,495.00 into an account earning an interest rate of 2.715% compounded continuously for 3 year(s) and thereafter earning an interest rate of 4.051% compounded monthly. How much money is in the account after 10 years? The amount in the account is (Note: Your answer should have a dollar sign and be accurate to two decimal places)
1. What is the interest earned from a savings of P10,000 at a simple interest rate of 107 per year for 5 years? (5 points) 2. How long does a man need to invest P5,000 to be P9,000 at an interest rate of 10 compounded annually? (5 points) 3. What is the rate of interest, compounded monthly charged to an investment of P2 000 that pays P1, 205 per month for 2 years. (5 points) 4. How much annual deposit...
1. Suppose that an account earns 4.8% interest per annum. How much would need to be deposited now in order to have $10000 in 5 years if there interest is compounded (a) Monthly; (b) Continuously? Give answers to the nearest dollar. 2. If an investment of $20000 is made in an account returning 3.2% then how long will it take for the account to have $24000 if (a) Interest is compounded quarterly? (four times a year) (b) Interest is compounded...
1. If the nominal interest rate of is 2% per quarter, what is the nominal rate per year ? 2. $100 of interest is paid each month on an investment of $10000, if the interest is compounded monthly at the end of 2 years, what is the accumulation at the end of two years ? 3. An individual wishes to deposit an amount of money now to have an accumulation of $500 at the end of five years. If the...
If 7000 dollars is invested in a bank account at an interest rate of 6 per cent per year,Find the amount in the bank after 13 years if interest is compounded annually:Find the amount in the bank after 13 years if interest is compounded quarterly:Find the amount in the bank after 13 years if interest is compounded monthly:Finally, find the amount in the bank after 13 years if interest is compounded continuously:
An investor can invest money with a particular bank and earn a stated interest rate of 8.80%; however interest will be compounded quarterly. What are the nominal, periodic and effective interest rates for this investment opportunity? Nominal Rate- Periodic Rate- Effective Annual Rate-
1. If the nominal interest rate of is 2% per quarter, what is the nominal rate per year? A) 0.5% B) 8% C) 16% D) 4% 2. $100 of interest is paid each month on an investment of $10000, if the interest is compounded monthly at the end of 2 years, what is the accumulation at the end of two years ? A) $12,544 B) $12,700 C) $12,400 D) $12,400 3. An individual wishes to deposit an amount of money...
(1 point) Suppose you invest $18,820.00 into an account earning an interest rate of 2.823% compounded continuously for 1 year(s) and thereafter earning an interest rate of 3.315% compounded daily. How much money is in the account after 8 years? The amount in the account is (Note: Your answer should have a dollar sign and be accurate to two decimal places)
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?