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You are given the accumulation function: a(t) = 2t^2 + 3t + 1. Determine the effective interest rate during the ninth year.
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- Derive an equation to find the end-of-year future sum F that is equivalent to a series of n beginning-of-year payments B at interest rate i. Then use the equation to determine the future sum F equivalent to six B payments of $100 at 8% interest.The effective rate of interest compounded quarterly is given by i(m)/m. What is m? Write your answer as an integer.Assume that at time 0 a sum L is lent for a series of n yearly payments. The rth payment, of amount xr, is due at the end of the rth year. Let the effective annual interest rate for the rth year be ir. Give an identity which expresses L in terms of the xr and ir.
- Find the interest rates in the situation as: The effective annual interest rate is 11.02% and compounding is monthly. Find the nominal interest rate.For the following investment, find the total number of compounding periods and the interest rate per period. Do not enter the percent symbol in your answer. Term of Nominal Interest Compounding Rate per Investment (Annual) Rate (%) Compounded Periods Period (%) 11 years 24 monthly %An investment pays you 9% interest, compounded quarterly. What is the periodic rate of interest? What is the nominal rate of interest? What is the effective rate of interest?
- Assume time is measured in years and today is time 0. A payment stream is due to start in 7 years' time from today. 12 annual payments in advance, each of amount 99, will be made. Thus the first payment is made at time 7. Assuming the effective rate of interest is 4% per annum, calculate the value at time 0 of the payment stream. Give your answer to 2 decimal places.Determine the simple interest. The rate is an annual rate. Assume 360 days in a year. p=$280, r=7.25%, t=2.75 years The simple interest is The annual interest rate is 12%. Find (a) the semi-annual rate,(b) the quarterly rate, (c) the monthly rate, and if possible, (d) the instantaneous rate.
- For each of the following cases, indicate (a) what interest rate columns and (b) what number of periods you would refer to in looking up the future value factor. (1) In Table 1 (future value of 1): Number of Annual Rate Years Invested Compounded Case A 5% 5 Annually Case B 8% 6 Semiannually Case A Case B . (a) % % (2) In Table 2 (future value of an annuity of 1): Annual Rate Number of Years Invested Compounded Case A 6% 9 Annually Case B 8% 5 Semiannually Case A Case B (b) periods periods (a) (b) % periods % periodsFor each of the following situations involving annuities, solve for the unknown. Assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (i = interest rate, and n = number of years) (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.)For each of the following situations involving annuities, solve for the unknown. Assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (i = interest rate, and n = number of years) (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.) Present Value Annuity Amount i = n = 1. ? $2,400 8% 5 2. 533,082 140,000 ? 4 3. 583,150 180,000 9% ? 4. 530,000 75,502 ? 8 5. 235,000 ? 10% 4