What compound interest rate j12 is equivalent over 10-year period to a compound interest rate of i=1.28 % for 9 years followed by a compount interest of i2=14.52 % for the next 1 years ? Answer: 0.0253
Q: What's the future value of P1,200 after 5 years if the appropriate interest rate is 6%, compounded…
A: Compound Interest is the widely used method in finding out interest on an amount. It is a method of…
Q: What is the present value of $73,000 in 11 years if the interest rate is 8% compounded semiannually?…
A: The question is based on the concept of Financial Management.
Q: If the nominal interest rate is 3%, how much is $5000 worth in 10 years in a continuously compounded…
A: The account value in 10 years is computed using the Future Value formula with continuous…
Q: Calculate the simple interest rate. (Round your answer to one decimal place.) P = $9100, I = $440,…
A: Simple interest is calculated by multiplying the interest rate by the principal and time.
Q: Find the missing values assuming continuously compounded interest. Initial…
A: Given Information: Initial investment - $500 Amount after 10 years - $1,505.00
Q: what is the nominal rate of interest compounded continuously for 8 years if the present worth factor…
A: Continuous Compounding N = 8 Present Value factor = 1.7506725
Q: complete the following: t time 0 is equivalent to: ($ at the end of year 7 at 6% interest rate ($ at…
A: In this we have to calculate the future value of today money with given interest rate.
Q: continuously
A: Interest that is calculated on both the initial principal and interest earned is referred to as…
Q: At 8% interest rate, determine the equivalent value V in the figure SD S S sa S SD given 23 2. 4 8%…
A: The calculation of equivalent cash flows uses the principal of time value of money. The equivalent…
Q: Considering an interest rate i=14% per year, what is the compound interest rate equivalent to the…
A: Interest rate is 14% per year To Find: Equivalent compounded interest rate for 45 days Equivalent…
Q: How much is $7,000,000 now equivalent to in sevent years from now at an interest rate of 7%? O a.…
A: Amount now = PV = $ 7000000 Period = asked for amount in 7th year which is after 6 years = hence…
Q: What is the present value of P 13,996.80 when the interest rate is 8% compounded annually for 2…
A: Given final value (F) = P 13996.80 r = 8% n = 2 years
Q: b) An APR of 5.875 produces an effective annual interest rate of 6.04% what is the compounding…
A: The effective annual rate is the actual return that the company owes to its investors.
Q: What's the present value of $18,544.86 discounted back 5 years if the appropriate interest rate is…
A: Note : We are choosing here the nearest answer provided in the question ,else correct round off…
Q: 3. If the nominal rate of interest is 10% per annum and there is quarterly compounding, the…
A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…
Q: What is the simple interest rate on a $800 investment paying $263.04 interest in 13.7 years? %…
A: A method of computing interest amounts in which the compounding effect was not considered by the…
Q: What nominal interest rate per year is equivalent to an effective 18% per year compounded…
A: Given: Effective interest rate = 18% Compounding semi annually
Q: At what simple interest rate per annum will P 1 become P 2 in 2 years? a. 100% b. 75% c. 50% d.…
A: Formula for calculating simple interest rate (r) = (1/t) x [(A/P) - 1] x 100 where, A = Total…
Q: If P100,000 is invested for 6 months at 1.5% per annum, what is the maturity value? O P100,750 O…
A: Present value: It is the current value of a future sum of money or cash flows given over a specified…
Q: a) What is the present value of the following payment series when the interest rate is 3% YR1 =…
A: The present value is calculated by discounting all the future values of cash flows with the…
Q: 1. An interest rate of 37% per year, compounded monthly, is nearest to year (Enter the value in…
A: Effective annual rate is the real rate that is actually earned on an investment by the investors…
Q: At what interest rate compounded quarterly will 90,000 amount to 100,000 in 8 years? Choices…
A: Present Value = 90,000 Future Value = 100,000 Time Period = 8 Years
Q: 18. If the single payment amount factor for a period of 5 years is 1.33822, what is the nominal rate…
A: Future value is the future worth of a cash flow at a certain rate of interest and period of time.…
Q: If the effective annual interest rate is 10%, what is the nominal annual rate if compounding is bi-…
A: Interest rate refers to the percentage at which a borrower pays the interest amount on the loan…
Q: 6. What is the nominal rate of interest compounded continuously for 8 years if the present worth…
A: A nominal interest rate is an important tool in the calculation of the present value and future…
Q: Determine the nominal interest rate compounded continuously corresponding to an effective interest…
A: Effective interest rate (EAR) = 12% Mathematics constant (e) = 2.7182818284590452353602874713527…
Q: What is the future value of $2,575 per year for 17 years at an interest rate of 6.69 percent?…
A: Future value of annuity = P x [(1 + i)n - 1]/i P = Annual payment i = interest rate n = number of…
Q: Calculate the simple interest rate. (Round your answer to one decimal place.) P = $4200, I = $670,…
A: SIMPLE INTEREST FORMULA: I=P×R×T100 GIVEN, I =$670 P=$4200 T=1 APPLYING FORMULA:…
Q: 4) If compound rate of interest is 8%, then what will be the interest of Tk. 6200 for one year and…
A: Given Information : Amount = Tk 6200 Time period = 1 year 5 months Annual interest rate = 8%
Q: When compounded bi-monthly P15000 becomes P22300 after 5 years. What is the interest rate? NOTE:…
A: Present value is also referred to as the present discounted value. Basically, it is the sum of the…
Q: The present value of 6,500 at 3% interest rate after 5 years is a. 4313 b. 4315
A: Three types of economies are: 1.Base 2. Best 3. Pessimistic.
Q: When compounded quarterly P12,000 becomes P 20,415.23 after 4 yrs. What is the nominal rate of…
A: Present value (PV) = P12000 Future value (FV) = P20,415.23 Period (t) = 4 Year Number of compounding…
Q: Which one of the following represents the highest effective interest rate per year? Select one:…
A: Daily compounded interest means that interest is accumulated on a daily basis and is calculated by…
Q: If $1000 becomes $1,811.36 after 5 years when invested at an unknown rate of interest compounded…
A: We need to use compound interest formula given below A=P(1+i)n where A= Final payment P=principal…
Q: Indicate whether the given statements is true (T) or false (F): "$1,791 10 years from now is…
A: Present Value is the current value of the future sum of money at the specific rate of return.
Q: 10. If P 11 200 is the present value of P 13 700 due at the end of 16 months, find a. discount…
A: compounding formula: fv = pv×1+rn fv = future value pv = present value r=rate n = number of years…
Q: What's the future value of $1,225 after 5 years
A: Future value (FV) refers to a method of calculating how much the present value (PV) of an asset or…
Q: What is the future value of $39,000 at the end of 5 periods at 6% compounded interest? (Round answer…
A: Future value = Amount deposited today x future value factor (6% , 5 years)
Q: Determine the simple interest. The rate is an annual rate. Assume 360 days in a year. p = $340, r =…
A: Simple interest = Principal * Interest rate * Time period
Q: At a compound interest rate of 10% per year, the amount that $10,000 one year ago is equivalent to…
A: Time Period (N) = 1 year Future Value = 10,000 Interest Rate = 10%
Q: Find the simple interest. (The rate is an annual rate unless otherwise noted. Assume 360 days in a…
A: The simple interest is based on the principal amount, the interest rate, and the time period.
Q: What is the nominal annual interest rate if the effective annual rate is 8.1% and compounding is…
A: Note: As per our guidelines, we can only answer one question at once. Please post other question…
Q: What's the future value of $1,300 after 5 years if the appropriate interest rate is 6%, compounded…
A: Interest means the extra amount which we received because of investment made and will be paid in…
Q: Mark the statement true (T) or false (F): "$1,791 in 10 years is equivalent to $900 now if the…
A: The changes in the value of money from the present to the future are determined by the concept of…
Q: for it to grow to S1.991 72 The annual interest rate compounded annually at which S520 must be…
A: Following details are given to us in the question: Present value (Investment) = $520 Future value of…
Q: What is the maturity value if P 10000 is compounded annually at an interest rate of 2% in 5 years?…
A: Note : All the Given Options are incorrect , so we are solving the correct one for you as per the…
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- What compound interest rate j,, is equivalent over 4-year period to a simple interest rate of 2.24 % the first year followed by a simple discount rate of 7.41 % for the next 3 years ? Answer: 0.0573What is the maturity value if P 10000 is compounded annually at an interest rate of 2% in 5 years? a. 11040.09 b. 11140.08 c. 11040.08 d. 11048.08If i= 14.8% per year, compounded monthly What is the effective interest rate per semiannual? (ABET, SO1) Select one: O a. 15.85% O b. 7.63% O c 74% O d. 1.23% O e. 7.91%
- 10. If P 11 200 is the present value of P 13 700 due at the end of 16 months, find a. discount interest rate Answer: b. simple interest rate Answer:what is the nominal rate of interest compounded continuously for 8 years if the present worth factor is equal to1. 7506725 A.4% B.5% C.6% D.7% E.NoneAssume that l2t =0.25% and that l1t = O. If the one-year interest rate is 5% and the two-year interest rate is 5.75%, then i1 is equal to: O A.6% O B. 5.75% O C. 5.50% O D. 5.25%
- which one is correct answer please confirm? Q29: What monthly rate of interest will yield an annual effective rate of interest of 14%? a. 1.14% b. 1.08% c. 1.10% d. 1.17%Suppose the term structure of interest rates is shown below: Term Rate (EAR%) 5.00% 4.80% O $2,408 1 year 2 years 3 years 5 years 10 years 20 years The present value (PV) of receiving $1,100 per year with certainty at the end of the next three years is closest to O $3,612 O $4,214 O $3,010 4.60% 4.50% 4.25% 4.15%Assume that l2t = 0.30% and that it = 0. If the one-year interest rate is 5% and the two-year interest rate is 5.75%, then it+1 equal to: is OA. 6.05% O B. 5.90% O C. 5.30% O D. 5.45%
- 1. Suppose the term structure of interest rates is shown below: 1 year Term Rate (EAR%) 5.00% 2 years 4.80% 3 years 4.60% 5 years 4.50% 10 years 4.25% 20 years 4.15% What is the present value (PV) of receiving $1100 per year with certainty at the end of the next three years?What is the effective interest rate per payment period for an interest rate of 12% compounded monthly when the payment is quarterly ? Select one: a.0.06 b. 0.5 c. 0.12 d. 0.4 e.0.03What nominal (per annum) interest rate i, compounded quar- terly, would we need such that a deposit of $9,000 now would yield a future value of $12,500 in 5 years? Give your answer as a percentage rounded to two decimal places (e.g. 1.23%).