Find the effective rate of interest under (a) semiannual, (b) quarterly, and (c) continuous compounding for Problem 11 26 where r was 9 percent (a) From (11 14), (b) Substituting, (c) From (11 15), Substituting, (1 ) 1 2 (1 00) re 2 1 (1 045) 1 re 1 09203 1 0 09203 9 20 (14 00) 1 (1 0225)4 1 re 1 0...

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Find the effective rate of interest under (a) semiannual, (b) quarterly, and (c) continuous compounding for Problem

Question:

Find the effective rate of interest under

(a) semiannual,

(b) quarterly, and

(c) continuous compounding for Problem 11.26 where r was 9 percent. image text in transcribed

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Schaum S Outline Of Mathematical Methods For Business Economics And Finance

ISBN: 978-1264266876

2nd Edition

Authors: Luis Moises Pena Levano

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Question Posted: Sep 20, 2024 06:03 AM

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Find the effective rate of interest under (a) semiannual, (b) quarterly, and (c) continuous compounding for Problem

Question:

(a) From (11.14), (b) Substituting, (c) From (11.15), Substituting, =(1+-)-1 2 += (1+.00) - re= 2 -1 = (1+.045) - 1 re 1.09203 1 = 0.09203 = 9.20% - -(14.00)* -1 = (1+.0225)4-1 re 1.093081 = 0.09308 9.31% re=e" - 1 re=e0.09 - 1 = re 1.094171 = 0.09417 9.42%

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Schaum S Outline Of Mathematical Methods For Business Economics And Finance

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