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A woman makes a deposit into an account. For the first 5 years the account accumulates with a force of interest of 0.05. For the
A woman makes a deposit into an account. For the first 5 years the account accumulates with a force of interest of 0.05. For the next 10 years the fund accumulates with an annual nominal discount rate of 6% convertible quarterly. For the 15 year period, what is the annual nominal interest rate convertible monthly? (A) 5.59% (B) 5.71% (C) 5.83% (D) 5.96% (E) 6.04% Jack and Jane both deposits $200 into separate bank accounts on January 1, 2007. Jack earns interest at a simple annual interest rate of j, while Jane earns interest at a nominal rate of 3% convertible semiannually. On January 1, 2012, their accounts have the same value. Calculate j. A) 3.02% B)3.21% C) 3.30% D) 3.43% E) 3.54%
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