Question
1- For a sum of money interested at 4% compounded semi-annually for 5 years. a)the nominal annual rate of interest (j). b)The number of compounding
1- For a sum of money interested at 4% compounded semi-annually for 5 years.
a)the nominal annual rate of interest (j).
b)The number of compounding periods per year (m).
c)The periods rate of interest (i)
d)The number of compounding periods in the term (n)
e)The compounding factors (1+i)n
f)The numerical value of the compounding factors.
2- What is the nominal rate of interest compounded quarterly if the effective rate of interest on an investment is 5.3%?
3- How much will a registered retirement savings deposit of $13 500.00 be worth in 11 years at 8.44% compounded quarterly? How much of the amount is interest?
4- To what future value will a principal of $7100.00 amount in three years at 7.6% p.a. compounded:
a) annually
b) semi-annually
c) quarterly
d) monthly
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