Find the interest rate per conversion period (i) and the total conversion periods (n) at the end of the indicated time. a) 8 years at 10% compounded quarterly b) 4 years at 12% every two months c) 7½ years at 9% compounded semi-annually d) 3 years and 3 months at 18% compounded quarterly e) 8 years and 6 months at 12% compounded monthly f) 96 months at 5% compounded monthly g) 33 months at 18% compounded monthly h) 1½ years at 5% compounded semi-annually i) 11 years at 16% compounded quarterly j) From April 24, 2008 to July 24, 2012 at 18% compounded quarterly
Find the interest rate per conversion period (i) and the total conversion periods (n) at the end of the indicated time. a) 8 years at 10% compounded quarterly b) 4 years at 12% every two months c) 7½ years at 9% compounded semi-annually d) 3 years and 3 months at 18% compounded quarterly e) 8 years and 6 months at 12% compounded monthly f) 96 months at 5% compounded monthly g) 33 months at 18% compounded monthly h) 1½ years at 5% compounded semi-annually i) 11 years at 16% compounded quarterly j) From April 24, 2008 to July 24, 2012 at 18% compounded quarterly
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
Related questions
Question
1. Find the interest rate per conversion period (i) and the total conversion periods (n) at the end of the indicated time.
a) 8 years at 10% compounded quarterly
b) 4 years at 12% every two months
c) 7½ years at 9% compounded semi-annually
d) 3 years and 3 months at 18% compounded quarterly
e) 8 years and 6 months at 12% compounded monthly
f) 96 months at 5% compounded monthly
g) 33 months at 18% compounded monthly
h) 1½ years at 5% compounded semi-annually
i) 11 years at 16% compounded quarterly
j) From April 24, 2008 to July 24, 2012 at 18% compounded quarterly
NOTE: STRICTLY USE THE GIVEN FORMULA/GUIDE IN THE PHOTO ATTACHED. DONT USE EXCEL. Solve it step by step
Transcribed Image Text:Illustration:
Required:
Assume that Mrs. Lucy Trillanes deposited P100,000.00 in Ban
Filipinas on June 30, 20x0.
The stated rate is 3% per annu
compounded monthly. Interest is credited every end of the month.
925-
ne
Priscarveg 10
Compute the future values of the account for three months ended, Juh
31, August 31 and September 30, 20x0.
Computation: Account balance, June 30, 20x0
P100,000.00
250.00
100,250.00
250.62
Account balance, Aug 31, 20x0
100,500.62
Add: Sep Interest (P100,500.62 x 0.0025) 251.25
Account balance, Sep 30, 20x0
P100,751.87
Add: July Interest (P100,000.00 x 0.0025#)
Account balance, July 31, 20x0
www.bollss
Add: Aug Interest (P100,250.00 x 0.0025)
#adjusted interest rate per month = 3% p.a. / 12 months = %= 0.0025
Computat
NAT
us
Transcribed Image Text:as a percentage "per month."
Stated Rate
12% p.a. compounded annually
12% p.a. compounded semiannually
12% p.a. compounded quarterly
12% p.a. compounded monthly
Formula for:
Example
n
264
12
-
=
=
to be used to calculate interest must be stated
Adjusted Interest Rate (i)
12% per annum
6% per 6-month period (12% / 2)
143
3% per quarter (12% / 4)
1%
per
month (12%/12)
Time / compounded period
1 year (12 mos) / monthly (1 mo)
1 ½ year (18 mos) / quarterly (3 mos)
2 years (24 mos) / semiannually (6 mos)
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