Find the value of the required components in each item. 1. Find the compound interest and maturity value if P = P43,000, with a rate of 5% is compounded semi-annually for 6 years. 2. Find the compound interest and present value if F = P105,000 with a rate of 2.5% is compounded quarterly for 3 years %3! Activity 2.3 Complete the table below by finding the unknown. Compound Maturity Value Present Nominal Interest Interest Time Total Value rate (ilm) compounded per in number of Interest conversion years conversions period (j) (n) 50,000 3% quarterly 6% semi- 4 40,000 annually
Find the value of the required components in each item. 1. Find the compound interest and maturity value if P = P43,000, with a rate of 5% is compounded semi-annually for 6 years. 2. Find the compound interest and present value if F = P105,000 with a rate of 2.5% is compounded quarterly for 3 years %3! Activity 2.3 Complete the table below by finding the unknown. Compound Maturity Value Present Nominal Interest Interest Time Total Value rate (ilm) compounded per in number of Interest conversion years conversions period (j) (n) 50,000 3% quarterly 6% semi- 4 40,000 annually
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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Question
![Activity 2.2
Find the value of the required components in each item.
1. Find the compound interest and maturity value if P = P43,000, with a rate
of 5% is compounded semi-annually for 6 years.
2. Find the compound interest and present value if F = P105,000 with a rate
of 2.5% is compounded quarterly for 3 years
Activity 2.3
Complete the table below by finding the unknown.
Compound Maturity
Value
Present
Nominal
Interest
Interest
Time
Total
Value
rate (im) compounded
per
in
number of
Interest
conversion
years
conversions
period (j)
(n)
60,000
3%
quarterly
6%
semi-
4
40,000
annually
Guide Questions:
For the first set of values
a. What unknown variable will you solve first?
b. How are you going to find j?
c. What will be n?
d. How much is the maturity value?
e. How much is the compound interest?
For the second set of values
a. What unknown variable will you solve first?
b. How are you going to find j?
c. What will be n?
d. How much is the maturity value?
e. How much is the compound interest?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F57bb3601-8462-494a-860d-144c5e8b3793%2Ffeea7c90-e60b-4057-b435-c0331db97a4a%2Fd13zn8s_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Activity 2.2
Find the value of the required components in each item.
1. Find the compound interest and maturity value if P = P43,000, with a rate
of 5% is compounded semi-annually for 6 years.
2. Find the compound interest and present value if F = P105,000 with a rate
of 2.5% is compounded quarterly for 3 years
Activity 2.3
Complete the table below by finding the unknown.
Compound Maturity
Value
Present
Nominal
Interest
Interest
Time
Total
Value
rate (im) compounded
per
in
number of
Interest
conversion
years
conversions
period (j)
(n)
60,000
3%
quarterly
6%
semi-
4
40,000
annually
Guide Questions:
For the first set of values
a. What unknown variable will you solve first?
b. How are you going to find j?
c. What will be n?
d. How much is the maturity value?
e. How much is the compound interest?
For the second set of values
a. What unknown variable will you solve first?
b. How are you going to find j?
c. What will be n?
d. How much is the maturity value?
e. How much is the compound interest?
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