Problem 4 A businessman wishes to have an amount of P2769.84 after 5 years. He deposited P500 each year into a savings bank that pays a nominal interest per annum compounded continuously. 1. Compute the nominal rate of interest. 2. Compute the effective rate of interest. 3. Compute the sinking fund factor for this equal payment. Ans. 1.5% 2. 5.127% 3. 0.180516

Problem 4 A businessman wishes to have an amount of P2769.84 after 5 years. He deposited P500 each year into a savings bank that pays a nominal interest per annum compounded continuously. 1. Compute the nominal rate of interest. 2. Compute the effective rate of interest. 3. Compute the sinking fund factor for this equal payment. Ans. 1.5% 2. 5.127% 3. 0.180516

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 8DQ: A Series EE U.S. government savings bond accrues 3.5% interest each year. The bond matures in three...

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