An advertisement of an investment firm states that if you invest P500 in their firm today you will get P1,000 at the end of 4,5 years. What nominal rate is implied if interest is compounded quarterly? Determine also the effective rate of interest.
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.
An advertisement of an investment firm states that if you invest P500 in their firm today you will get P1,000 at the end of 4,5 years. What nominal rate is implied if interest is compounded quarterly? Determine also the effective rate of interest.
Step by step
Solved in 2 steps