1. Compute the ordinary time and exact time between: Answers should be in terms of years and days. a. January 5, 2002 and February 28, 2003 b. January 5, 1998 and May 16, 2003 c. March 23, 1980 and June 5, 2002 d. March 18, 1986 and August 5, 2000 e. February 17, 1996 and July 24, 1996 a.) Determine the maturity value of a note having a face value of Php12,400 and bears interest at 11% compounded semi-annually in 5 years. b.) When (exact date) will Php10,000, invested on January 17, 1997 on a bank that offers an interest rate is 3.5% compounded continuously, amount to Php25,000? c.) What nominal rate compounded semi-monthly is equivalent to 6% compounded quarterly? d.) Find the effective rate of interest for an investment of a principal value X that earns 71% per year, compounded continuously.
1. Compute the ordinary time and exact time between: Answers should be in terms of years and days. a. January 5, 2002 and February 28, 2003 b. January 5, 1998 and May 16, 2003 c. March 23, 1980 and June 5, 2002 d. March 18, 1986 and August 5, 2000 e. February 17, 1996 and July 24, 1996 a.) Determine the maturity value of a note having a face value of Php12,400 and bears interest at 11% compounded semi-annually in 5 years. b.) When (exact date) will Php10,000, invested on January 17, 1997 on a bank that offers an interest rate is 3.5% compounded continuously, amount to Php25,000? c.) What nominal rate compounded semi-monthly is equivalent to 6% compounded quarterly? d.) Find the effective rate of interest for an investment of a principal value X that earns 71% per year, compounded continuously.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter19: The Basic Tools Of Finance
Section: Chapter Questions
Problem 1CQQ
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Transcribed Image Text:1. Compute the ordinary time and exact time between: Answers should be in terms of years
and days.
a. January 5, 2002 and February 28, 2003
b. January 5, 1998 and May 16, 2003
c. March 23, 1980 and June 5, 2002
d. March 18, 1986 and August 5, 2000
e. February 17, 1996 and July 24, 1996
a.) Determine the maturity value of a note having a face value of Php12,400 and bears interest
at 11% compounded semi-annually in 5 years.
b.) When (exact date) will Php10,000, invested on January 17, 1997 on a bank that offers an
interest rate is 3.5% compounded continuously, amount to Php25,000?
c.) What nominal rate compounded semi-monthly is equivalent to 6% compounded quarterly?
d.) Find the effective rate of interest for an investment of a principal value X that earns 71%
per year, compounded continuously.
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