In real dollars, $500 on August 14, 2011 plus $1000 on August 14, 2016 is equivalent to $1705 on August 14, 2021. If the force of interest was 6%, find the annual effective rate of inflation. Answer to 4 decimal places, for example either 1.23% or 0.0123. b) James makes semi-annual deposits into an account earning 6% compounded semi-annually. The initial semi-annual deposit amount is $100 and each year the deposit amount increases by 1\%. That is the payments are: $100, $100, $101, $101, $102.01, $102.01, etc. Calculate the accumulated value in the account at the time of the 30th deposit. Answer to the nearest cent.

In real dollars, $500 on August 14, 2011 plus $1000 on August 14, 2016 is equivalent to $1705 on August 14, 2021. If the force of interest was 6%, find the annual effective rate of inflation. Answer to 4 decimal places, for example either 1.23% or 0.0123. b) James makes semi-annual deposits into an account earning 6% compounded semi-annually. The initial semi-annual deposit amount is $100 and each year the deposit amount increases by 1\%. That is the payments are: $100, $100, $101, $101, $102.01, $102.01, etc. Calculate the accumulated value in the account at the time of the 30th deposit. Answer to the nearest cent.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 36P

See similar textbooks

Similar questions

You wish to make 4 equal annual deposits into a savings account such that at the time of your last deposit there is $108,581 in the savings account. If the interest rate on the account is an annual nominal interest rate of 3.9% compounded daily, how much must the equal annual deposits be? Provide an exact answer to two decimal places. -Be sure to use the correct annual interest rate when determining the required annual deposit (i.e. you must use the effective annual interest rate) -Use 365 days for the number of days in a year
If you borrow $4,600 at $850 interest for one year, what is your effective interest rate for the following payment plans? (Input your answers as a percent rounded to 2 decimal places.) X Answer is complete but not entirely correct. a. b. Annual payment Semiannual payments C. Quarterly payments d. Monthly payments Effective Rate of Interest 18.48 % 19.33 X % 19.80 X % 20.13 X %
If you borrow $7,500 at $550 interest for one year, what is your effective interest rate for the following payment plans? (Input your answers as a percent rounded to 2 decimal places.) a. Annual payment b. Semiannual payments c. Quarterly payments d. Monthly payments Effective Rate of Interest % % %
Suppose $1,200 is deposited into an account which has an annual percentage rate of 9.81% per year. Assume it remains in the account for 18 years and no additional money is added to the account other than interest. (a) Complete the boxes below to write an expression for the amount (in dollars) at year x = 18, of assuming interest is compounded annually. Do not round any values. You can enter arithmetic expressions (containing +, -, *, /, or ^) in any of these boxes. Number 1200 •( Number What is the value in year x = 18 of an investment of $1,200 dollars which pays 9.81% compounded annually? $ Number (Round to the nearest 0.01 dollars) (b) Complete the boxes below to write an expression for the amount (in dollars) at year x = 18, assuming interest is compounded weekly (52 times per year). Do not round any values. You can enter arithmetic expressions (containing +, –, *, /, or ^) in any of these boxes. Number 1200 ( Number What is the value in year x = 18 of an investment of $1,200…
You have taken a loan of $92,000.00 for 35 years at a 4.9% annual interest rate, with interest compounded quarterly. Fill in the amortization table below to show how the payments will be applied to interest and principal: (Round all answers to 2 decimal places. Please note the order of the headings in the table - make sure you put the answers in the appropriate columns as layed out below.) Payment number Payment amount Principal Amount Interest 0) 1) 2) 3) $ LA tA +A LA $ Balance $92,000.00 tA LA
What is the nominal annual rate of interest compounded semi-annually if deposits of $254 made each month for 4.0 years accumulate to $13,000? The nominal annual rate of interest is % compounded semi-annually. (Round to two decimal places as needed.)
Dengar
Chris Taylor is settling a $20,280 loan due today by making 6 equal annual payments of $4,656.44. Click here to view factor tables Determine the interest rate on this loan, if the payments begin one year after the loan is signed. (Round answer to O decimal places, e.g. 8%.) Interest rate
Occasionally a savings account may actually pay interest compounded continuously. For each deposit, find the interest earned if interest is compounded (a) semiannually; (b) quarterly. (c) monthly (d) daily, and (e) continuously Use 1 year 365 days. Principal Rate $1029 1.6% Time 5 years (a) The interest earned of interest is compounded semiannually is (Do not round until the final answer. Then round to the nearest cent as needed.) (b) The interest earned if interest is compounded quarterly is $ (Do not round until the final answer. Then round to the nearest cent as needed) (e) The interest earned if interest is compounded monthly is $ (Do not round unti the final answer. Then round to the nearest cent as needed) (d) The interest earned if interest is compounded daily is (Do not round until the final answer. Then round to the nearest cent as needed) (e) The interest earned if interest is compounded continuously is (Do not round until the final answer. Then round to the nearest cent as…
For ethe case shown in the following table, determine the amount of the equal, end of year deposits necessary to accumulate the given sum at the end of the specified period, assuming the stated annual interest rate. Sum to be accumulated: $130,000 Accumulation Period (years): 30 Interest Rate: 13% The amount of the end of year annual deposit is? (round to the nearest cent)
A deposit of $8441 will amount to $11789 in 10 years with interest compounded monthly. What is the nominal rate of interest? (Round your answer to 2 decimal places)
Molly Hamilton deposited $60,000 at Bank of America at 16% interest compounded quarterly.What is the effective rate (APY)? (Use the Table provided.) (Do not round intermediate calculations. Round your answer to the nearest hundredth percent.) Effective Rate %