1. Calculate the real interest rate per annum using the full Fisher equation if the nominal interest rate is 6% per annu...
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 that pays a nominal
8% per annum compounded quarterly. Calculate the accumulated balance right
Michael does not contribute further deposits.
A. $14,353.05
B. $19,101.27
C. $19,243.18
D. $19,317.32
7. David plans to invest his savings over the years and is considering a number of savings account
. Which of the following interest rate specifications
?
A. 8.4% per annum compounded quarterly.
B. 8.5% per annum compounded annually.
C. 8% per annum compounded semi-annually.
D. 8.25% per annum compounded monthly.
8. Jenny is planning to buy a car 5 years from now at a price of $35,000 with cash. She decides
single deposit right now to fund for the purchase. Calculate the amount of deposit
nominal interest rate during the first three years is 12% per annum compounded monthly
the nominal interest rate is 7% per annum compounded annually.
A. $19,265.74
B. $21,366.38
C. $22,862.03
D. $24,954.52
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1. Calculate the real interest rate per annum using the full Fisher equation if the nominal interest rate is 6% per annu...
1. If the nominal interest rate of is 2% per quarter, what is the nominal 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. If the nominal interest rate of is 2% per quarter, what is the nominal rate...
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...
A certain savings and loan company advertises that is pays 6% nominal interest, compounded quarterly. What...
A certain savings and loan company advertises that is pays 6% nominal interest, compounded quarterly. What is the effective interest rate per annum? If you deposit $6000 now and plan to withdraw it in five years, how much would the account be worth at that time? (Hint: to find the effective interest rate, use the formula: (1 + r/M)M-1.)
You deposit $2,500 at the end of the year ( 0) into an account that pays interest at a rate of 7% compounded a...
You deposit $2,500 at the end of the year ( 0) into an account that pays interest at a rate of 7% compounded annually. Two years after your deposit, the savings account interest rate changes to 12% nominal interest compounded monthly. Five years after your deposit, the savings account again changes its interest rate this time the interest rate becomes 8% nominal interest compounded quarterly Nine years after your deposit, the saving account changes its rate once more to 6%...
You deposit $3,000 at the end of the year (k = 0) into an account that pays interest at a rate of 7% compounded annually. A year after your deposit, the savings account interest rate changes to 1 2%...
You deposit $3,000 at the end of the year (k = 0) into an account that pays interest at a rate of 7% compounded annually. A year after your deposit, the savings account interest rate changes to 1 2% nominal interest compounded month y Five years after ur de o the savings account aga changes it interest rate this time e interest rate becomes 8% nominal interest compounded quarterly. Eight years after your deposit, the saving account changes its rate...
its all one big question. Find the equivalent interest rates to the given nominal interest rates....
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...
2. Determine the future value amount of $400 invested at 6% per annum compounded quarterly for...
2. Determine the future value amount of $400 invested at 6% per annum compounded quarterly for three years and five months. 3. A demand loan of $10,000 is repaid by payments of $5000 in one year, $6000 in four years, and a final payment in six years. Interest on the loan is at 10% per annum compounded quarterly during the first year, 8% per annum compounded semi-annually for the next three years and 7.5% per annum compounded annually for the...
You deposit $1,000 at the end of the year (k = 0) into an account that...
You deposit $1,000 at the end of the year (k = 0) into an account that pays interest at a rate of 6% compounded annually. Two years after your deposit, the savings account interest rate changes to 12% nominal interest compounded monthly. Five years after your deposit, the savings account again changes its interest rate, this time the interest rate becomes 8% nominal interest compounded quarterly. Eight years after your deposit, the saving account changes its rate once more to...
a. For an interest rate of 100% per year compounded continuously, calculate the effective daily, weekly,...
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?
1. What is the interest earned from a savings of P10,000 at a simple interest rate of 107 per year for 5 years...
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. 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. 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...
You deposit $2,500 at the end of the year ( 0) into an account that pays interest at a rate of 7% compounded annually. Two years after your deposit, the savings account interest rate changes to 12% nominal interest compounded monthly. Five years after your deposit, the savings account again changes its interest rate this time the interest rate becomes 8% nominal interest compounded quarterly Nine years after your deposit, the saving account changes its rate once more to 6%...
You deposit $3,000 at the end of the year (k = 0) into an account that pays interest at a rate of 7% compounded annually. A year after your deposit, the savings account interest rate changes to 1 2% nominal interest compounded month y Five years after ur de o the savings account aga changes it interest rate this time e interest rate becomes 8% nominal interest compounded quarterly. Eight years after your deposit, the saving account changes its rate...
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...
2. Determine the future value amount of $400 invested at 6% per annum compounded quarterly for three years and five months. 3. A demand loan of $10,000 is repaid by payments of $5000 in one year, $6000 in four years, and a final payment in six years. Interest on the loan is at 10% per annum compounded quarterly during the first year, 8% per annum compounded semi-annually for the next three years and 7.5% per annum compounded annually for the...
You deposit $1,000 at the end of the year (k = 0) into an account that pays interest at a rate of 6% compounded annually. Two years after your deposit, the savings account interest rate changes to 12% nominal interest compounded monthly. Five years after your deposit, the savings account again changes its interest rate, this time the interest rate becomes 8% nominal interest compounded quarterly. Eight years after your deposit, the saving account changes its rate once more to...
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...
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