\ A sum of OMR (160000) is invested at an interest rate compounded continuously. After 9 years the amount has become OMR (224230.34). Find the interest rate. Use this formula: P=P.er.t
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7\ A sum of OMR (160000) is invested at an interest rate compounded continuously.
After 9 years the amount has become OMR (224230.34). Find the interest rate.
Use this formula: P=P.er.t
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- If the annual interest rate is 8%, what is the daily interest rate that would be used as the "r" in the time value of money equation? Hint: the equation uses the decimal equivalent of the percent Enter your answer to four decimal places.For each of the following cases, indicate (a) to what rate columns, and (b) to what number of periods you would refer in looking up the interest factor. 1. In a future value of 1 table: Annual Rate Number of Years Invested Compounded (a) Rate of Interest a. 9% 12 Annually b. 8% 7 Quarterly C. 12% 16 Semiannually % % % (b) Number of Periods 2. In a present value of an annuity of 1 table: (Round "Rate of Interest" answers to 1 decimal place, e.g. 4.5% and other answers to O decimal places, e.g 45.) Annual Number of Years Rate Invested Number of Rents Involved Frequency of Rents (a) Rate of Interest (b) Number of Periods a. 10% 28 28 Annually b. 10% 15 30 Semiannually % % 8% 7 28 Quarterly %The current amount A of a principal P invested in a savings account paying an annual interest rate r is given by A = P(1+r/n)^(rt) where n is the number of times per year the interest is compounded. For continuous compounding, A = Pe^(rt). Suppose $10,000 is initially invested at 2.5 percent (r = 0.025). a. Plot A versus t for 0 ≤ t ≤ 20 years for four cases: continuous compounding, annual compounding (n = 1), quarterly compounding (n = 4), and monthly compounding (n = 12). Show all four cases on the same subplot and label each curve. On a second subplot, plot the difference between the amount obtained from continuous compounding and the other three cases. b. Redo part a, but plot A versus t on log-log and semilog plots. Which plot gives a straight line?
- Use the following time value of money tables for Questions 1-4. Round answers to the nearest dollar. (The annual interest rate for all problems is 6%.) n = 3; i = 6% n = 6; i = 3% Future value of 1 1.19102 1.19405 Present value of 1 .83962 .83748 Future value of an annuity 3.18360 6.46841 Present value of an annuity 2.67301 5.41719 Redlands Inc. makes semiannual deposits of $2,000 each June 30 and December 31 each year, beginning in 2020. The amount of money Redlands will have on December 31, 2022 immediately after the sixth and final deposit is $Suppose that the interest rate is 5 percent. Instructions: Enter your answers rounded to 2 decimal places. a. What is the future value of $100 six years from now? $ How much of the future value is total interest? $ b. By how much would total interest be greater at an interest rate of 7 percent than at an interest rate of 5 percent?*Using Matlab* The current amount A of a principal P invested in a savings account paying an annual interest rate r is given by A = P(1+r/n)^(nt) where n is the number of times per year the interest is compounded. For continuous compounding, A = Pe^(rt). Suppose $10,000 is initially invested at 2.5 percent (r = 0.025). a. Plot A versus t for 0 ≤ t ≤ 20 years for four cases: continuous compounding, annual compounding (n = 1), quarterly compounding (n = 4), and monthly compounding (n = 12). Show all four cases on the same subplot and label each curve. On a second subplot, plot the difference between the amount obtained from continuous compounding and the other three cases. b. Redo part a, but plot A versus t on log-log and semilog plots. Which plot gives a straight line?
- 0.1 x (0.8) fort = 1, 2, Problem 5. The spot rate of interest is defined by st 3, 4, 5. Find the present value of a 5-year annuity-due in which the first payment is equal to $1000, and each subsequent payment increases by 6% of the immediately preceding payment.3. DETAILS ZILLDIFFEQMODAP11 3.1.010. (b) In how many years will the initial sum deposited have doubled? (Round your answer to the nearest year.) years Need Help? When interest is compounded continuously, the amount of money increases at a rate proportional to the amount S present at time t, that is, ds/dt = rs, where r is the annual rate of interest. (a) Find the amount of money accrued at the end of 7 years when $3000 is deposited in a savings account drawing 5 % annual interest compounded continuously. (Round your answer to the nearest cent.) $ (c) Use a calculator to compare the amount obtained in part (a) with the amount S = 3000 1 + S = $ Read It 7(4) 3000(1+1(0.0575)) (*) MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER that is accrued when interest is compounded quarterly. (Round your answer to the nearest cent.)Use the continuous compound interest formula to find the indicated value. A= $16,687; P=$10,400; t= 60 months; r= ?
- What is the Present Value (PV) of a 4-year $500 Ordinary Annuity if the annual interest (discount) rate is 4%? Please draw a timeline to visualize the problem. Use "." to form a time interval, e.g. 0.................1.................2.................3 ( calculate the first sentence and provide a timeline)Determine the present value of the following single amounts: Future Amount Interest Rate No. of Periods $20,000 14,000 1. 7% 10 12 2. 12 3. 25,000 20 40,000 10 4.Determine the present value of the following single amounts: Future Amount Interest Rate No. of Periods1. $ 20,000 7% 102. 14,000 8 123. 25,000 12 204. 40,000 10 8
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