If $840.00 accumulates to $1177.12 in three years, nine months compounded quarterly, what is the effective annual rate of interest? The effective annual rate of interest is %. (Round the final answer to four decimal places as needed. Round all intermediate values to six decimal places as needed.)

If $840.00 accumulates to $1177.12 in three years, nine months compounded quarterly, what is the effective annual rate of interest? The effective annual rate of interest is %. (Round the final answer to four decimal places as needed. Round all intermediate values to six decimal places as needed.)

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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Answer each problem and show the solution.
You have found three investment choices for a one-year deposit: 12% APR compounded monthly, 11% APR compounded annually, and 10% APR compounded daily. Compute the EAR for each investment choice. (Assume that there are 365 days in the year.) For the case of 12% APR compounded monthly the EAR is %. (Round to three decimal places.)
You’re prepared to make monthly payments of $265, beginning at the end of this month, into an account that pays 9 percent interest compounded monthly. How many payments will you have made when your account balance reaches $68,000? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
K What is the nominal annual rate of interest compounded monthly at which $1070.00 will accumulate to $1383.53 in four years and six months? The nominal annual rate of interest is (Round the final answer to four decimal places as needed. Round all intermediate values to six decimal places as needed)
Scheduled payments of $503, $1303, and $975 are due in one-and-a-half years, three-and-a-half years, and six years respectively. What is the equivalent single replacement payment two years from now if interest is 1.7% compounded semi-annually? The equivalent single replacement payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
What cash payment is equivalent to making payments of $1471.00 at the end of every year for 8 years if interest is 12% per annum compounded quarterly? The cash payment is S (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Sixty monthly deposits are made into an account paying 6% nominal interest compounded monthly. ( Select ] What is the monthly effective interest rate? If the objective of these deposits is to accumulate $100,.000 by the end of the fifth year, what is the amount of each ( Select) deposit? ( Select ) If the deposit amount is increased by $100, how much earlier in number of months will the payment period be reduced? ( Select ) What is the effective annual interest rate per year? If the compounding is changed to quarterly, what is the amount of each deposit if the total payment period and effective annual interest rate are to be maintained? | Select] | >
You have found three investiment choices for a one-year deposit 11.7% APR compounded monthly, 11.7% APR compounded annually, and 10.8% APR compounded daily. Compute the EAR for each investment choice. (Assume that there are 365 days in the year.) (Note: Be careful not to round any intermediate steps less than six decimal places.) The EAR for the first investment choice is 12.48 % (Round to two decimal places)
A mortgage of $38,000 is repaid by making payments of $270 at the end of each month for 13 years. What is the nominal annual rate of interest compounded annually? The nominal annual rate of interest is % compounded annually. (Round to two decimal places as needed.) V
From an account originally containing $1800, $96 is withdrawn at the end of each month if interest is 6.4% compounded quarterly, for how long can the withdrawals be made? State your answer in years and months (from 0 to 11 months) The withdrawals can be made for year(s) and month(s).
How much will deposits of $35 made at the end of each month amount to after 12 years if interest is 4% compounded quarterly? The deposits will amount to S (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
You have found three investment choices for a one-year deposit: 10.4% APR compounded monthly, 10.4% APR compounded annually, and 9.7% APR compounded daily. Compute the EAR for each investment choice. (Assume that there are 365 days in the year.) (Note: Be careful not to round any intermediate steps less than six decimal places.) The EAR for the first investment choice is _____%. (Round to three decimal places.) Part 2 The EAR for the second investment choice is _____%. (Round to three decimal places.) Part 3 The EAR for the third investment choice is______%. (Round to three decimal places.)

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