In calculating compound interest, the number of periods is equal to: O Number of years divided by rate O Number of years times the rate O Number of years times the number of times compounded per year Number of years divided by number of times compounded per year O None of these D The interest on $3,000 at 8% compounded semiannually for six years using your calculator or formula is $1,803. O True O False D A contingent annuity has a fixed amount of payments. O True O False D The maturity value in compounding is like the value of an annuity. O True O False
In calculating compound interest, the number of periods is equal to: O Number of years divided by rate O Number of years times the rate O Number of years times the number of times compounded per year Number of years divided by number of times compounded per year O None of these D The interest on $3,000 at 8% compounded semiannually for six years using your calculator or formula is $1,803. O True O False D A contingent annuity has a fixed amount of payments. O True O False D The maturity value in compounding is like the value of an annuity. O True O False
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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Transcribed Image Text:In calculating compound interest, the number of periods is equal to:
O Number of years divided by rate
O Number of years times the rate
O Number of years times the number of times compounded per year
Number of years divided by number of times compounded per year
O None of these
D
The interest on $3,000 at 8% compounded semiannually for six years using your calculator or formula is $1,803.
O True
O False
D
A contingent annuity has a fixed amount of payments.
O True
O False
D
The maturity value in compounding is like the value of an annuity.
O True
O False
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