A man deposits P500 at the end of each year and expected to have an amount of P2,769.84 at the end of 5 years. 1. What is the nominal rate of interest if it is compounded annually? 2. What is the nominal rate of interest if it is compounded continuously? 3. Compute the equivalent compound amount factor if it is compounded continuously Ans. 1. 5.127% 2. 5% 3. 5.3968

A man deposits P500 at the end of each year and expected to have an amount of P2,769.84 at the end of 5 years. 1. What is the nominal rate of interest if it is compounded annually? 2. What is the nominal rate of interest if it is compounded continuously? 3. Compute the equivalent compound amount factor if it is compounded continuously Ans. 1. 5.127% 2. 5% 3. 5.3968

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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