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 2. 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. 3. 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? 4. What nominal rate compounded semi-monthly is equivalent to 6% compounded quarterly? 5. Find the effective rate of interest for an investment of a principal value X that earns 7 1/2% 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 2. 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. 3. 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? 4. What nominal rate compounded semi-monthly is equivalent to 6% compounded quarterly? 5. Find the effective rate of interest for an investment of a principal value X that earns 7 1/2% per year, compounded continuously.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Please avoid using chatgpt to solve this. Please show complete solution. Thank you!
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
2. 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.
3. 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?
4. What nominal rate compounded semi-monthly is equivalent to 6% compounded
quarterly?
5. Find the effective rate of interest for an investment of a principal value X that earns 7 1/2%
per year, compounded continuously.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education