A friend tells you she has saved for 7 years and has a present sum of $10,000, which earned at the rate of 8% per year, compounded quarterly. (a) Determine the equivalent amount she had to start with 7 years ago. (b) Write the EFFECT function to find the effective rate per year.
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
A friend tells you she has saved for 7 years and has
a present sum of $10,000, which earned at the rate
of 8% per year, compounded quarterly. (a) Determine
the equivalent amount she had to start with 7 years ago. (b) Write the EFFECT function to find
the effective rate per year.
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