10. An investment of $2,000 is made and the interest rate is 1.5% per month. At the end of a year, determine the total
10. An investment of $2,000 is made and the interest rate is 1.5% per month. At the end of a year, determine the total amount available if: (a) simple interest is used. (b) discrete compound interest is used. (c) continuous compound interest is used. Also determine (d) the nominal interest rate. (e) the effective discrete compound interest rate. (f) the effective continuous compound interest rate. 11. An investment of $2,000 is made and the interest rate is 1.5% per quarter. At the end of a year, determine the total amount available if: (a) simple interest is used. (b) discrete compound interest is used. (c) continuous compound interest is used. Also determine (d) the nominal interest rate. (e) the effective discrete compound interest rate. (f) the effective continuous compound interest rate.
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Step: 1
Answers a Simple Interest The formula for calculating simple interest is A P x r x n Where A Amount at the end of the period P Principal amount r Nominal interest rate n Number of periods In this case ...
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Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
