An amount of $105,650 was accumulated after 10 years of payments of $2,024.15 at thebeginning of every 3 months.Find the corresponding interest rate as a percentage with 2 decimals, e.g., 9.87a) What is the monthly compounded nominal rate?ModeN =P/Y =AA/A/Rate =b) What is the effective rate?A

An annuity is a series of payments provided in exchange for a lump sum payment. It is widely used in…

Answered: An amount of $105,650 was accumulated…

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

Problem 1PS

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A payment of $2798.6 due 9 months ago and payment of $2925.6 due in 4 months are to be repaid by a single equivalent pay today. Given the interest rate charged is 2.91%, what is the size of the single equivalent payment? (Hint: use "today") as the focal date)
How do I find the periodic interest rate for the following?
If the annual interest rate is 12.9% and the dollar amount compounds daily, you would ( a. multiply b. divide) the interest rate by (a. 1 b. 12 c. 52 c. 365) and you would (a. mul tiply b. divide) the number of time periods by (a. 1 b. 12 c. 52 d. 365)
What is the future value (in $) of $1,661 in 13 years assuming an interest rate of 4.15 percent compounded quarterly? Answer to two decimals.
To be equivalent to 10.6% compounded quarterly, what must be the nominal rate with: (Do not round intermediate calculations and round your final answers to 2 decimal places.) a. Annual compounding? b. Semiannual compounding? c. Monthly compounding?
When $8,600 is invested in a savings account paying simple interest for the year, the interest, i in dollars, can be obtained from the equation i=8,600r, where r is the rate of interest in decimal form. Graph i=8,600r, for r up to and including a rate of 16%. If the rate is 7%, how much interest is earned? OA. $6,020 OB. $602 OC. $586 OD. $622
An amount of $124 is paid at the end of every month into an account. If the nominal interest rate is 3.02% compounded semiannually, how long (in years and months) will it take for the payments to accumulate to an amount of $6,455.41? Use the integer value of N to calculate years and months. |CN = |2 P/Y = 12 I/Y = 3.02 FV 6,455.41 PMT = $ -124 = years N= 192 to the nearest integer) PV = $14,892.17 X x (round = month(s)
K What is the nominal annual rate of interest compounded monthly at which $1070.00 will accumulate to $1383.53 in four years and six months? The nominal annual rate of interest is (Round the final answer to four decimal places as needed. Round all intermediate values to six decimal places as needed)
Complete the following without using Table12.1. Note: Round the "Total amount" and "Total interest" to the nearest cent. Principal: $1,360 Time (years): 1 Rate of compound interest: 10% Compounded: Quarterly Periods: Rate: % Total amount: Total interest: Period 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% 9.5% 10.0% 1 1.0050 1.0100 1.0150 1.0200 1.0250 1.0300 1.0350 1.0400 1.0450 1.0500 1.0550 1.0600 1.0650 1.0700 1.0750 1.0800 1.0850 1.0900 1.0950 1.1000 2 1.0100 1.0201 1.0302 1.0404 1.0506 1.0609 1.0712 1.0816 1.0920 1.1025 1.1130 1.1236 1.1342 1.1449 1.1556 1.1664 1.1772 1.1881 1.1990 1.2100 3 1.0151 1.0303 1.0457 1.0612 1.0769 1.0927 1.1087 1.1249 1.1412 1.1576 1.1742 1.1910 1.2079 1.2250 1.2423 1.25.97 1.2773 1.2950 1.3129 1.3310 4 1.0202 1.0406 1.0614 1.0824 1.1038 1.1255 1.1475 1.1699 1.1925 1.2155 1.2388 1.2625 1.2865 1.3108 1.3355 1.3605 1.3859 1.4116 1.4377 1.4641 5 1.0253 1.0510 1.0773 1.1041 1.1314 1.1593 1.1877…
The interest rate is 8% while the effective rate interest rate is 46.9328%. How many times does the interest pays a year? O 5 O 2
An amount of $8,430 is deposited into an account earning 7% interest compounded quarterly. How much will be in the account in 5 years and 9 months? Round the answer to the nearest cent. P/Y = C/Y = N = I/Y = PV = PMT = FV =
Answer the following Compound Interest problem using the provided formula ONLY. Show your complete solution. 7. Compound Interest A. If the sum of P 12,000 (pesos) is deposited in an account earning interest rate of 9% compounded quarterly, what will it become after 1 year? B. In the previous problem, what is the effective rate? C. What is then the equivalent nominal interest rate if compounded monthly?

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