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1: Calculate the accumulated amount after 7 months on a principal (capital) 10 000 with 10% interest rate. Use and compare a) simple decursive
1: Calculate the accumulated amount after 7 months on a principal (capital) 10 000 with 10% interest rate. Use and compare a) simple decursive interest; b) compound decursive interest. 2: Calculate the accumulated amount after 3 years on a principal (capital) 10 000 with 10% interest rate. Use and compare a) simple decursive interest; b) compound decursive interest. 3: (The amount paid at bill discount = anticipative interest) Calculate how much is paid to the client if the bank discounts bill on a nominal value 500 000 at the end of the unit period with interest rate 12% p.a. 4: (The amount paid at bill discount = anticipative interest) Calculate how much is paid to the client if the bank discounts bill on a nominal value 500 000 in time 6 month before maturity with interest rate 12% p.a. 5: The client needs to raise capital and knows that in one year may return 50 000. Bank offers loans, which bear interest with interest rate 12% p.a. a) with decursive interest; b) with anticipative interest. Compare results and decide, which scheme would you recoment to client and why. 6: The client needs to raise capital and knows that in 10 years may return 500 000. Bank offers loans, which bear interest with interest rate 12% p.a. a) with decursive interest; b) with anticipative interest. Compare results and decide, which scheme would you recoment to client and why. 7: Calculate and compare the effective interest rates of interest of the four investments: 1. a) 12% p.a. with annually compounding; 2. b) 12% p.a. with semi-annually compounding; 3. c) 12% p.a. with monthly compounding; 4. d) 12% p.a. with weekly compounding. Use function in MS Excel: EFFECT()
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1a Simple Decursive Interest The formula to calculate simple decursive interest is Accumulated Amount Principal Principal Interest Rate Time Principal 10000 Interest Rate 10 per annum Time 7 months 71...Get Instant Access to Expert-Tailored Solutions
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