Environmental recovery company RexChem Partners plans to fi nance a site reclamation project that will require...
Environmental recovery company RexChem Partners plans to fi nance a site reclamation project that will require a 4-year cleanup period. The company plans to borrow $3.6 million now. How much will the company have to get in a lump-sum payment when the project is over in order to earn 12% per year, compounded semiannually, on its investment?
Homework Answers
Borrowed money = $3.6 million
N = 4 years
r = 12%.
The formula of Compound Interest calculating semi annually = P ( 1 + r / 2) ^ (n * 2)
Thus company must get, 3.6 (1 + .12 / 2) ^ 8 = 4.05 million in 4 years compounded semi annually after clean up period.
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Environmental recovery company RexChem Partners plans to fi
nance a site reclamation project that will require...
Environmental recovery company RexChem Partners plans to finance a site reclamation project
Q1Return to a What effective interest rate per month, compounded continuously, is equivalent to a nominal rate of 10% per year? The effective interest rate per month is _______ %Q2Environmental recovery company RexChem Partners plans to finance a site reclamation project that will require a 4-year cleanup period. If the company borrows $4.1 million now, how much will the company have to get at the end of each quarter in order to earn 15% per year, compounded weekly on its investment?...
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