Question
1a.)Calculate, to the nearest cent, the present value of an investment that will be worth $1,000 at the stated interest rate after the stated amount
1a.)Calculate, to the nearest cent, the present value of an investment that will be worth $1,000 at the stated interest rate after the stated amount of time. HINT [See Quick Example 4.]
5 years, at 5.2% per year, compounded weekly (52 times per year)
1b.) Find the effective annual interest rate r of the given nominal annual interest rate. Round your answer to the nearest 0.01%.
13% compounded monthly
1c.) Compute the specified quantity.
You take out a 5 month, $4,000 loan at 8% annual simple interest. How much would you owe at the end of the 5 months (in dollars)? (Round your answer to the nearest cent.)
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