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) = $520 Future value of…
Q: What is the maturity value if P 10000 is compounded annually at an interest rate of 2% in 5 years?…
A: Note : All the Given Options are incorrect , so we are solving the correct one for you as per the…
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- What compound interest rate j, is equivalent over 11-year period to a compound interest rate of i12=2.26 % for 8 years followed by a compount interest of i=7.31 % for the next 3 years ? Answer: 3.86%What compound interest rate j,, is equivalent over 4-year period to a simple interest rate of 2.24 % the first year followed by a simple discount rate of 7.41 % for the next 3 years ? Answer: 0.0573What is the maturity value if P 10000 is compounded annually at an interest rate of 2% in 5 years? a. 11040.09 b. 11140.08 c. 11040.08 d. 11048.08
- If i= 14.8% per year, compounded monthly What is the effective interest rate per semiannual? (ABET, SO1) Select one: O a. 15.85% O b. 7.63% O c 74% O d. 1.23% O e. 7.91%what is the nominal rate of interest compounded continuously for 8 years if the present worth factor is equal to1. 7506725 A.4% B.5% C.6% D.7% E.None10. If P 11 200 is the present value of P 13 700 due at the end of 16 months, find a. discount interest rate Answer: b. simple interest rate Answer:
- Assume that l2t =0.25% and that l1t = O. If the one-year interest rate is 5% and the two-year interest rate is 5.75%, then i1 is equal to: O A.6% O B. 5.75% O C. 5.50% O D. 5.25%which one is correct answer please confirm? Q29: What monthly rate of interest will yield an annual effective rate of interest of 14%? a. 1.14% b. 1.08% c. 1.10% d. 1.17%Assume that l2t = 0.30% and that it = 0. If the one-year interest rate is 5% and the two-year interest rate is 5.75%, then it+1 equal to: is OA. 6.05% O B. 5.90% O C. 5.30% O D. 5.45%
- Q1: Calculate (PW) for annual payments (900$/year) if the first payment will deposit at the present time, and the last one will deposit at begin of the ninth year? If you know that it's on deposit at the fifth year, and the interest rate is (15%)!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%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?