What will $800 be worth in 3 months if the nominal rate of interest is 25% and: i. interest is compounded every 5 hours? ii. interest is compounded monthly?
What will $800 be worth in 3 months if the nominal rate of interest is 25% and: i. interest is compounded every 5 hours? ii. interest is compounded monthly?
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
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What will $800 be worth in 3 months if the nominal rate of interest is 25% and:
interest is compounded every 5 hours?
i.
ii. interest is compounded monthly?
(b) Determine the nominal interest rate if an investment of $20 grew to $30 after 2 years
and interest was compounded semi-annually.
(c) A certain asset compounds interest continuously in its first 5 years and quarterly in its
remaining 2 years. Determine the present value of this investment if it is worth $1200
after 7 years and the asset's nominal interest rate remains fixed at 6% throughout the
life of the asset.
101 words
1284
MAR
12](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F23cdc0d7-7d33-42d3-8fb9-b8ab1ea99c34%2F5a76ac07-00ff-4b58-b0ff-b756074cb766%2Fnio1a2b_processed.jpeg&w=3840&q=75)
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What will $800 be worth in 3 months if the nominal rate of interest is 25% and:
interest is compounded every 5 hours?
i.
ii. interest is compounded monthly?
(b) Determine the nominal interest rate if an investment of $20 grew to $30 after 2 years
and interest was compounded semi-annually.
(c) A certain asset compounds interest continuously in its first 5 years and quarterly in its
remaining 2 years. Determine the present value of this investment if it is worth $1200
after 7 years and the asset's nominal interest rate remains fixed at 6% throughout the
life of the asset.
101 words
1284
MAR
12
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