An amount of $29,200 will provide 9 years of payments of $2,518.50 at the end of every 6 months. Find the corresponding interest rate as a percentage with 2 decimals, e.g., 9.87 a) What is the monthly compounded nominal rate? Mode N = P/Y = Rate = b) What is the effective rate?

An amount of $29,200 will provide 9 years of payments of $2,518.50 at the end of every 6 months. Find the corresponding interest rate as a percentage with 2 decimals, e.g., 9.87 a) What is the monthly compounded nominal rate? Mode N = P/Y = Rate = b) What is the effective rate?

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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if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest a) per year b) per semiannual c) per bi month d) per quarter c) per two years Use the editor to format your answer
please do the following questions with full working
Assume that time is measured in months. Calculate the present value at time 0 of a payment of £131 paid at time 18, using an interest rate of 9% per annum effective.
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.
Suppose the interest rate is 10.2 % APR with monthly compounding. What is the present value of an annuity that pays $ 119 every 6 months for 6 years? Question content area bottom Part 1 The 6 -month effective interest rate is 5.209 %. (Round to three decimal places.) Part 2 The present value is $enter your response here . (Round to the nearest cent.)
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Compute the future values of the following annuities first assuming that payments are made on the last day of the period and then assuming payments are made on the first day of the period: (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Payment $ 183 5,155 75,084 167,932 Years 13 8 5 9 Interest Rate (Annual) 12% 11 13 4 Future Value (Payment made on last day of period) 4 Future Value (Payment made on first day of period)
Use 365 for the number of the days in a year. Calculate the future value (in dollars) of $1,150 deposited into an account earning an annual simple interest rate of 5% compounded daily after 3 years. Round your answer to the nearest cent
A deposit of $8441 will amount to $11789 in 10 years with interest compounded monthly. What is the nominal rate of interest? (Round your answer to 2 decimal places)
es If you borrow $6,100 at $510 interest for one year, what is your annual interest cost for the following payment plan? (Round the final answers to 2 decimal places.) a. Annual payment b. Semiannual payments c. Quarterly payments d. Monthly payments Effective rate
1. Consider an annuity that pays £500 at the end of each year for 7 years. The annual effective interest rate is 7% p.a. Compute the present value of this cashflow £ 数字 Enter an answer correct to 2 decimal places Compute the effective duration of this cashflow 数字 Enter an answer correct to 2 decimal places 2. A payment of £60 will be made in 10 years. The annual effective interest rate is 6% p.a. Compute the convexity of this payment 数字 Enter an answer correct to 2 decimal places
Use 365 for the number of days in a year. Calculate the future value (in dollars) of $1,150 deposited into an account earning an annual simple interest rate of 5% compounded daily after 3 years. (Round your answer ro rhe nearest cent.

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