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1. Find the rate of interest if compound amount factor compounded bi-monthly for 5 years is equal to 1.487887. • A. 7% • B. 5% • C. 8% • D. 6%

1. Find the rate of interest if compound amount factor compounded bi-monthly for 5 years is equal to 1.487887. • A. 7% • B. 5% • C. 8% • D. 6%

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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PROBLEM SET 2 (INTEREST) Find the rate of interest if compound amount factor compounded bi-monthly for 5 years is equal to 1.487887. 1. • A. 7% . В. 5% • C. 8% • D. 6% 2. Compute the nominal rate for a period of 6 years for an effective rate of 8.33% if it is compounded continuously. • A. 7% • B. 5% • C. 8% • D. 6% 3. A man loan P2000 from the bank. How long would it take in years for the amount ofthe loan and interest to equal P3280 if it was made at 8% simple interest. • A. 7 years . В. 5 years • C. 8 years • D.6 years 4. A man loan P2000 from the bank. How long would it take in years if it was made at8% compounded quarterly. A. 5.25 years B. 7.25 years • C. 6.25 years • D.8.25 years
Transcribed Image Text:PROBLEM SET 2 (INTEREST) Find the rate of interest if compound amount factor compounded bi-monthly for 5 years is equal to 1.487887. 1. • A. 7% . В. 5% • C. 8% • D. 6% 2. Compute the nominal rate for a period of 6 years for an effective rate of 8.33% if it is compounded continuously. • A. 7% • B. 5% • C. 8% • D. 6% 3. A man loan P2000 from the bank. How long would it take in years for the amount ofthe loan and interest to equal P3280 if it was made at 8% simple interest. • A. 7 years . В. 5 years • C. 8 years • D.6 years 4. A man loan P2000 from the bank. How long would it take in years if it was made at8% compounded quarterly. A. 5.25 years B. 7.25 years • C. 6.25 years • D.8.25 years
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