Bi-monthly deposits of 16,000 are made to accumulate a fund at the end of 8 years. Round off final answers for ieff to 4 decimal places and final answers for future fund value F to two decimal figures. a. What would be the value of the fund after the last deposit if the nominal interest rate is 16.4% compounded monthly? b. What is the bi-monthly effective interest rate if the nominal interest rate is 12.1% compounded monthly? Answer in % with 4 decimal places. c. What would be the value of the fund after the last deposit if the nominal interest rate is 19.8% compounded quarterly? d. What is the bi-monthly effective interest rate if the nominal interest rate is 19.5% compounded quarterly? Answer in % with 4 decimal places. e. What is the bi-monthly effective interest rate if the nominal interest rate is 14.6% compounded annually? Answer in % with 4 decimal places. f. What would be the value of the fund after the last deposit if the nominal interest rate is 15.7% compounded semi-annually?

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.