QUESTION 11Tony deposits 1000 into a saving account. For the first 5 years the money accumulates with a force of interest 8-4%. For the next 3 years the money accumulates at a nominal discountrate of 6% convertible semiannually. At the end of 10 years the money has earned at an annually effective rate of 5.2%. What was the nominal interest rate convertible quarterly forthe last 2 years?Ⓒa.5.4m846.5m06.09d. 6.3m

Accumulation of an investment occurs at different rates, in different time periods. The overall rate…

Answered: Tony deposits 1000 into a saving…

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

See similar textbooks

Similar questions

Mr. Sy borrowed money from a bank with an interest of 6% compounded monthly for 10 years. His monthly amortization is P20, 000. 6. What is the total interest rate per conversion period? C. 0.0075 A. 0.005 B. 0.006 D. 0.06 7. What is the total number of period of time to fully paid the loan? А. 100 B. 120 C. 160 D. P 240 8. After 80th payment, what is the total number of payments remain? В. 30 C. 40 9. What is the total number of payment of Mr. Sy after he paid the 10-year mortgage? C. P2, 148,919.34 D. P2, 400, 000 A. 20 D. 120 A. P1, 899, 600.14 B. P2, 026,802.24 10. How much is his outstanding balance after the 80th payment? C. P704, 564. 56 D. P723, 444. 56 A. P690, 444. 56 В. Р683, 134. 56
Determine the interest to be deducted in advance if P 50 000 is due after 6 months with a discount rate of 6 1/2%. A. P1 625 B. P1 725 C. PI 825 Answer: Find the exact interest on P 105 000 at 5% simple interest for 90 days. A. PI 294. 50 B. P1 294. 52 C. P1 294. 54 Answer: Chichi borrowed P 50 000 from a bank. He paid an interest of P1 500 for 5 months, at what rate was the interest charged? A. 7.5% B. 7.2% C. 7% Answer:
A bank customer borrows X at an annual effective rate of 12.5% and makes level payments at the end of each year for n years. (i) The interest portion of the final payment is 153.86. (ii) The total principal repaid as of time (n − 1) is 6009.12. (iii) The principal repaid in the first payment is Y. Calculate Y. OA. 500 OB. 470 O C. 480 O D. 490 OE. 510
You are able to make a current deposit in the amount of $21,605.49. The expected discount rate is 9.6%. Interest is earned on an annual basis. The time period is 10 years. What is the size of the annual withdrawal possible under these circumstances? a. $2,160.54 b. $3465.00 c. $3,456.00 d. $4,356.00

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS