ECON A nominal annual rate of interest of 7%, compounded continuously, has an effective annual interest rate of? Which of the following has the least effective annual interest rate?  a. 12 % compounded quarterly  b. 11.7 % compounded semi-annually  c. 11.5 % compounded monthly  d. 12.2 % compounded annually

Your future company has purchased a machine and has entered into a contract that requires the company to pay $2000 each year for the upgrade of machine components at the end of years 6, 7, and 8. In anticipation of the upgrade cost, your company has decided to deposit equal amounts ( X ) at the end of each year for five years in a row in an account that pays i = 6% . The first deposit is made at the end of the first year. What is the value of X?

If P500,000 is deposited at a rate of 11.25% compounded monthly, determine the compounded interest after 7 years and 9 months.