A $5,000 bond has an interest rate of 6% per year payable quarterly. The bond matures 15 years from now. At a nominal interest rate of 8% per year, compounded quarterly, the present worth of the bond is represented by which of the equations below:

PW = 300(P/A, 8%, 15) + 5,000(P/F, 8%, 15)

PW = 75(P/A, 2%, 60) + 5,000(P/F, 2%, 60)

PW = 300(P/A, 2%, 60) + 5,000(P/F, 2%, 60)

PW = 75(P/A, 1.5%, 60) + 5,000(P/F, 1.5%, 60)

An interest of 20% per year compounded quarterly, is equivalent to what effective interest rate per year?

21.55%

22.13%

5.00%

21.00%

For a nominal annual rate r= 6% per year, the effective continuous rate per year is equal to:

6.136%

6.184%

6.090%

5.127%

How much money would you have in your bank account eight years from now if you make one single deposit of $5,000 today (year "0") and the bank offers you a nominal interest rate of 8% per year, compounded semiannually?

Question 16 options:

$8,200

$9,255

$9,365

A mortgage bond with face value of $10,000 has a bond interest rate of 8% per year payable quarterly. What is the amount of the bond interest (I) or interest payment every quarter?

Question 21 options:

$250

$800

$10,000

$200

If an interest is advertised in the newspaper as "APY of 10% per year compounded monthly", this interest rate is a nominal rate.

Question 1 options:

	True
	False

$6,843