Interest Rate
Suppose you receive $100 at the end of each year for the next three years. The interest rate is 8% per annum (interest paid annually)
Question:
Compute the effective 3 years rate (total interest over 3 years) using excel. 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.
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Calculate effective 3 years rate after 3 years if interest paid annually
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?
Use Excel to answer this question 3 Part 1 (8 marks) 4 Suppose you receive $100...
Use Excel to answer this
question
3 Part 1 (8 marks) 4 Suppose you receive $100 at the end of each year for the next three years. 5 6 a. (2 marks) 7 If the interest rate is 8% per annum (interest paid annually), what is the present value of these cash flows? 8 9 b. (2 marks) 10 What is the future value in three years of the present value you computed in part (a)? 11 12 c. (2...
1. Calculate the real interest rate per annum using the full Fisher equation if the nominal interest rate is 6% per annu...
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Compute the interest rate at which $500 per month payments should grow to accumulate savings of $50,000 in 3 years. Payments are made at the end of each month. (Note: Round your answer to two decimal places.) EFFECT DISC RATE NOMINAL A B 1 Data Description 2 NPER 3 x 12 = 36 3 PMT 500 4 PV 0 5 FV 50,000 6 [Type] 0 7 Interest Rate = 8 = % Compute the stated interest rate on a...
1) Investment X for 100,000 is invested at a nominal rate of interest, j, convertible semi-annually....
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Please dont direct simple compound interest formula. Know the difference between PMT and P end withdrawals of $1,500? R...
Please dont direct simple compound interest formula. Know the
difference between PMT and P
end withdrawals of $1,500? Round n to the next larger integer. Compute the nominal annual rate of interest at which $500 paid at the end of every year for 6. fourteen years accumulates to $9,799.32. Outline all calculator steps to receive full marks. 2 MARKS
end withdrawals of $1,500? Round n to the next larger integer. Compute the nominal annual rate of interest at which $500...
Find the accumulated value of $4000 at the end of 5 years if the nominal rate...
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...
Jeff puts $100 into a fund that pays an effective annual rate of discount of 20%...
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4. Assume that a fund will grow at a nominal annual discount rate of 2.5 %convertible...
4. Assume that a fund will grow at a nominal annual discount rate of 2.5 %convertible monthly for the first three years, force of interest δt = (t) / ( 1+0.1t) for the next two years, effective annual rate of discount at 3% for the next three years and effective annual rate of interest of 3.5% thereafter. Calculate the present value now of 75000 to be paid in 9 years from now and of 100000 to be paid in 12...
I can't make excel figure out the continuous interest. (#4) You plan to invest $2,100 in...
I can't make excel figure out the continuous interest. (#4)
You plan to invest $2,100 in an individual retirement arrangement (IRA) today at a nominal Compounding frequency and time value Personal Finance Problem annual rate of 8%, which is expected to apply to all future years. a. How much will you have in the account at the end of 9 years if interest is compounded (1) annually, (2) semiannually, (3) daily (assume a 365-day year), and (4) continuously? b. What...
Use Excel to answer this
question
3 Part 1 (8 marks) 4 Suppose you receive $100 at the end of each year for the next three years. 5 6 a. (2 marks) 7 If the interest rate is 8% per annum (interest paid annually), what is the present value of these cash flows? 8 9 b. (2 marks) 10 What is the future value in three years of the present value you computed in part (a)? 11 12 c. (2...
Please dont direct simple compound interest formula. Know the
difference between PMT and P
end withdrawals of $1,500? Round n to the next larger integer. Compute the nominal annual rate of interest at which $500 paid at the end of every year for 6. fourteen years accumulates to $9,799.32. Outline all calculator steps to receive full marks. 2 MARKS
end withdrawals of $1,500? Round n to the next larger integer. Compute the nominal annual rate of interest at which $500...
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...
I can't make excel figure out the continuous interest. (#4)
You plan to invest $2,100 in an individual retirement arrangement (IRA) today at a nominal Compounding frequency and time value Personal Finance Problem annual rate of 8%, which is expected to apply to all future years. a. How much will you have in the account at the end of 9 years if interest is compounded (1) annually, (2) semiannually, (3) daily (assume a 365-day year), and (4) continuously? b. What...
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