1. What is the future worth amount of a series of equal quarterly payments of $1,000 for 20 years at an interest rate of 6% per year compounded Quarterly? what is the future worth if the interest is compounded monthly? 2. If the CPI for January 2008 is 208.837 and the CPI for December 2018 is 255.539, what is the average annual inflation rate (per year) from Jan 2008 to Dec 2018? Calculate monthly inflation rate and then use annual effective interest rate
1. What is the future worth amount of a series of equal quarterly payments of $1,000 for 20 years at an interest rate of 6% per year compounded Quarterly? what is the future worth if the interest is compounded monthly? 2. If the CPI for January 2008 is 208.837 and the CPI for December 2018 is 255.539, what is the average annual inflation rate (per year) from Jan 2008 to Dec 2018? Calculate monthly inflation rate and then use annual effective interest rate
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
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Transcribed Image Text:1. What is the future worth amount of a series of equal quarterly payments of $1,000 for
20 years at an interest rate of 6% per year compounded Quarterly?
what is the future worth if the interest is compounded
monthly?
2. If the CPI for January 2008 is 208.837 and the CPI for December 2018 is 255.539, what
is the average annual inflation rate (per year) from Jan 2008 to Dec 2018?
Calculate monthly inflation rate and then use annual effective interest rate
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