rate per period (%)

Q: Find the total number of compounding periods and the interest rate per period for the investment.…

A: Amount means the sum to be received after few year with interest. Principal means the sum to be…

Q: Compound interest at the end of 8 years. with a principal amount of 10,000 and an annual intrest…

A: This is a case of compounding. The final amount is obtained after compounding the principal amount.

Q: If an investment of $974.00 eamed interest of $189.00 at 6.3% compounded semi-annually, for how many…

A: The concept of time value of money will be applied here. A sum of money invested today attracts and…

Q: Find the effective annual interest rate for each case:   APR Compounding Period  Effective Annual…

A: Formula for effective interest rate is as follows,

Q: a. Set up an amortization schedule for a $19,000 loan to be repaid in equal installments atthe end…

A: The above question deals with the amortization of loan by way of annuity payments and observing the…

Q: An investment of S6,560 earns interest at the rate of 5% and is compounded quarterly. What is the…

A: Investment = 6560 Interest rate = 5℅/4 = 1.25℅ per quarter N = 28 quarters (7 years)

Q: 4. Find the maturity value of a $15, 000 investment with an interest rate of 6%, compounded…

A: Maturity value refers to an amount that is to be accumulated at the end of investment period by…

Q: 1.Find the total number of compounding periods and the interest rate per period for the investment.…

A: Term = 9  Years Interest rate = 4% Number of compounding per year = 4

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.