Which of the following has the least effective annual rate of interest? 12.30 % compounded annually 11.75% compounded quarterly 11.95% compounded semi-annually 11.68% compounded monthly

Q: You have selected an account that yields 3.85% compounded monthly to invest the $4,051,948 that you…

A: The effective annual interest rate (EAR), also called the annual percentage yield, means the true…

Q: What is the future value of $3,000 saved for 6 years at 4% interest

A: FV = PV ( 1 + r )^t FV = Future value PV = present value i = interest rate compounded annually t =…

Q: Tamara Massey received $1,500,000 from an insurance company after her husband's death. She wants to…

A: Interest rate per month can be calculated as follows: Thus, the interest rate is 0.67%

Q: You borrow $700,000 at 3% interest for 30 years on a mortgage.  How much total will you pay back on…

A: Compound interest is also referred to as "interest that is not simple." Compound interest does not…

Q: You pay 10,000$ per year for 10 years. what is the total payment at the end of 10 years with knowing…

A: Compound interest in layman terms can be referred to as 'interest on interest'. This means that…

Q: One invested $10,000 five years ago. The first three years, the investment earned 12% compounded…

A: here we calculate the amount of money accumulated in five years as follow;

Q: You are borrowing $500,000 to buy a house. The interest rate is 4% compounded monthly.  What is…

A: The per month payment is calculated by the following formula: PV=PMTi1-11+in where, PV= Amount of…

Q: A series of equal quarterly payments of $2,000 for 10 years is equivalent to what future lump-sum…

A: Quarterly payment (A)=$2000 Total number of quarters for which the payment is made =10×4=40…

Q: What sum deposited today at 9% compounded annually for 18 years will provide the same amount as…

A: Formula for the future annuity is given as: F = A (1+R)t-1RFormula for the presnet value P =…