If in 5.8% per semiannual, compounded manthly, What is the nominal quarter rate. CABET, SO1)
If in 5.8% per semiannual, compounded manthly, What is the nominal quarter rate. CABET, SO1)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:If i 5.8% per semiannual, compounded monthly, What is the nominal quarter rate.
(ABET, SO1)
Answer:
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Follow-up Questions
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Follow-up Question
Transcribed Image Text:Calculate the equivalent FW at i= 10% per year for the
following net cash flow:
Year
Cash flow, $
-2,000
-2,000
3
-2,000
4.
4,600
5
4,600
4,600
Select one:
O a. 6415
O b. 5091
O c. 4429
O d. 5753
O e. 7077
Solution
by Bartleby ExpertFollow-up Question
Transcribed Image Text:Find the uniform annual amount that is equivalent to a
uniform gradient series in which the first year's payment is
$6,800, the second year's payment is $6,550, the third year's
payment is $6,300, and so on, and there is a total of 10
payments. The interest rate is 8%.
Select one:
O a. 5832
O b. 6026
O c 5639
O d. 6219
O e 6413
Solution
by Bartleby ExpertFollow-up Question
Transcribed Image Text:Find the value of the unknown quantity Z in the following
diagram, such that the equivalent cash outflow equals the
equivalent cash inflows when i= 18% per year,
compounded semiannually.
Ycars
Solution
by Bartleby ExpertFollow-up Question
Transcribed Image Text:What is the quarterly payment on a loan of $22,000 for 5
years at i= 8% per year, compounded semi-annually?
Assume that interperiod cash flows earn compound
interest (ABET, SO1)
Select one:
O a. 1220
O b. 1342
O c. 1281
O d. 1403
O e. 1464
Solution
by Bartleby ExpertFollow-up Question
Transcribed Image Text:Identify the following interest rates as nominal or effective:
(ABET, SO1)
A: 1%= 6% per semiannual, compounded monthly
B: 1%= 7% per year, compounded quarterly
C: 1%= 1.4% per month
Select one:
O a. All of them are nominal
O b. A and C are effective, and B is nominal rate
O c. C is effective, and A and B are nominal rates
O d. All of them are effective
O e. A is effective, and B and Care nominal rates
Solution
by Bartleby ExpertFollow-up Question
Transcribed Image Text:How long does it take for $8,000 to become $12,500 when
the interest rate is 8% per year. (ABET, SO1)
Select one:
O a 72
Ob.7.8
Oc.58
O d.6.3
O e. 5.3
Solution
by Bartleby ExpertFollow-up Question
Transcribed Image Text:Maintenance costs for a machine with an expected 10-year
life are estimated to be $1,700 each year for the first 5 years
Followed by a $2,000 expenditure in year 8 and a $2,500
expenditure in the year 10. What is the equivalent present
worth cost? Assume i= 6% per year.
Select one:
O a.-10,233
O b.-11.497
Oc-9,812
O d.-8,127
O e.-6863
Solution
by Bartleby ExpertFollow-up Question
Transcribed Image Text:If i= 14.8% per year, compounded monthly What is the
effective interest rate per semiannual? (ABET, SO1)
Select one:
O a. 15.85%
O b. 7.63%
O c 74%
O d. 1.23%
O e. 7.91%
Solution
by Bartleby ExpertFollow-up Question
Transcribed Image Text:If you invest $7,000 at 10% per year, compounded
continuously, how much would it be worth in five years.
Select one:
O a. 11,543
O b.8,245
Oc.13,192
O d. 10,389
O e. 9,070
Solution
by Bartleby ExpertKnowledge Booster
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