Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

16-18 all please 16. What nominal rate, compounded weekly over seven years, is equivalent to j6=6% for the first two years, j12=9% for the next

16-18 all please
image text in transcribed
16. What nominal rate, compounded weekly over seven years, is equivalent to j6=6% for the first two years, j12=9% for the next three years, and j2=4% for the last two years? (A) 6.483% (B) 6.693% (C) 6.908% (D) 6.684% 17. A long-term promissory note for $40,000 is taken out on June 15,2018 . The interest rate on the note is j4=7% and the note is due on Dec 15,2023 . What is the maturity value of the note? (A) $58,597.50 (B) $58.589.15 (C) $58,398.79 (D) 557,581.47 18. A person invests in a fund earning interest at j12=6%. The annual rate of inflation is 2% in year 1 , 2.5% in year 2,3.0% in year 3 and 3.5% in year 4 . What is the annual real interest rate, compounded once a year, eamed over the 4 -year period? (A) 3.50% (B) 3.33% (C) 3.25% (D) 3.16%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Analysis With Microsoft Excel 2016

Authors: Timothy R. Mayes, Todd M. Shank

8th Edition

1337298042, 9781337298049

More Books

Students also viewed these Finance questions

Question

Explain how derivatives give traders high leverage.

Answered: 1 week ago

Question

=+a) Why is there no coefficient for Medium?

Answered: 1 week ago