1. The effective annual interest rate is 8.50000%, find the semi-annual present value factor. Be sure to keep as many decimal places as possible (at least 5) for all intermediate calculations. 2. Armita deposits $400 in an account paying a nominal interest rate 9.625% compounded quarterly. Bob deposits $1,200 in an account paying a nominal interest rate i(26). After 17 years they have the same amount in their accounts. What is i(26)? 3. Armita has 13 months to save $2,750.00 for her university tuition. She deposits $X today, $300.00 in 4 months, and $550.00 in 11 months. The account earns interest at the rate i(12)= 4.730%. Find X, so that she will reach her target on time.
Provide answer and solutions for 3 problems.
1. The effective annual interest rate is 8.50000%, find the semi-annual
2. Armita deposits $400 in an account paying a nominal interest rate 9.625% compounded quarterly. Bob deposits $1,200 in an account paying a nominal interest rate i(26). After 17 years they have the same amount in their accounts. What is i(26)?
3. Armita has 13 months to save $2,750.00 for her university tuition. She deposits $X today, $300.00 in 4 months, and $550.00 in 11 months. The account earns interest at the rate i(12)= 4.730%. Find X, so that she will reach her target on time.
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