You have found three investment choices for a one-year deposit: 12% APR compounded monthly, 11% APR compounded annually, and 10% APR compounded daily. Compute the EAR for each investment choice. (Assume that there are 365 days in the year.) For the case of 12% APR compounded monthly the EAR is %. (Round to three decimal places.)

Q: Find the compound amount for the following deposit. $19,000 at 6% compounded quarterly for 9 years.…

A: The compound interest function works on the principle that the interest earned per compounding…

Q: Find the interest rate for a $8500 deposit accumulating to $11,612, compounded annually for 6 years.…

A: A = the final amount (in this case, $11,612) P = the principal (initial deposit) (in this case,…

Q: You need $24,856 at the end of nine years, and your only investment outlet is a 10 percent long-term…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: $1,200 is deposited every six months in an account that earns 2% compounded semi-annually, how many…

A: Effective interest rate is interest rate after considering impact of compounding and more is…

Q: What is the present value of $7,280 payable at the end of 9 years? Use a nominal rate (monthly…

A: Present value is a financial concept used to measure the present value of money in the future and to…

Q: You make $9,300 annual deposits into a retirement account that pays an APR of 9.9 percent compounded…

A: The FV of an account refers to the cumulative value of cash flows at a fixed future date assuming…

Q: You have found three investment choices for a one-year deposit: 10% APR compounded monthly, 9% APR…

A: Effective interest rate is interest rate after considering the impact of compounding on the interest…

Q: Find the compound amount for the following deposit. $16,000 at 5% compounded quarterly for 10 years.…

A: The future value (FV) of an investment is the value of the investment at a future point in time,…

Q: You deposit 2,000 in an account that pays 7% interest compounded semiannually.after two years the…

A: The concept of time value of money will be used here. Money deposited today gets computed and hence…

Q: For the following annuity due, determine the nominal annual rate of interest. Payment Term Period 3…

A: An annuity refers to a stream of periodic payments made in exchange for a lump sum payment. It is…

Q: 6000 to invest in an annuity from which you plan to make regular withdrawals over the next 3 years.…

A: Withdrawal from investment can be done depending on the interest rate and period.

Q: How much must be deposited at the end of each month for 7.75 years to accumulate to $1264.00 at 7%…

A: The given problem can be solved using PMT function in excel. PMT function computes savings/…

Q: A promissory note will pay $52,000 at maturity 8 years from now. If you pay $25,000 for the note…

A: A promissory note is a written promise made by one party (the "issuer" or "maker") to pay a specific…

Q: How much will deposits of $270 made at the end of each 6 months amount to after 5 years if interest…

A: Compound = Semiannually = 2Future Value = fv = $270Time = t = 5 * 2 = 10

Q: , how much interest will you earn on a $1,000 deposit​ for: a. 8 months.

A: Compound interest is computed by multiplying the original principal amount by one plus the yearly…

Q: You have a financial goal of $140,000. The rate is 3% compounded annually. The time is 16 years.…

A: Formula to calculate annual periodic deposit Annuity=FV *r[(1+r)n-1] Where, FV = Future value r =…

Q: An annuity with a cash value of $14,000 earns 5% compounded semi-annually. End-of-period semi-annual…

A: Cash Value = $14,000 Interest Rate = 5% compounded semi annual

Q: You can earn $42 in interest on a $1,000 deposit for eight months. If the EAR is the same regardless…

A: Compound interest is computed by multiplying the original principal amount by one plus the yearly…

Q: You just obtained a loan of $13,384 with monthly payments for four years at 8.4 percent interest,…

A: The concept of time value of money can be used here. As per the concept of time value of money the…

Q: (Annuity number of periods) How long will it take to pay off a loan of $47,000 at an annual rate of…

A: Loan amount = $47,000Interest rate = 8% compounded monthlyMonthly payment = $650

Q: Use the appropriate formula to find the future value (in $) of $900 deposited at the beginning of…

A: The present value method is used to evaluate the different levels of investment projects. With the…

Q: You want to receive ​$275 at the end of every three months for 5 years. Interest is 5.7% compounded…

A: Present value refers to the current value of an asset present at some future date. It is helpful…

Q: (Annuity number of periods) How long will it take to pay off a loan of $48,000 at an annual rate of…

A: An annuity is a financial product or contract offered by insurance companies, financial…

Q: If you contribute $1000.00 into an RRSP every six months for fifteen years and interest on the…

A: GIVEN, pmt =$1000 NPER = 15 X 2 =30 RATE = 8%2=4% PV=0