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Additional Problems: 1. For d = .09 calculate the following equivalent rates and state how often the interest or discount is being credited: a. b.

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Additional Problems: 1. For d = .09 calculate the following equivalent rates and state how often the interest or discount is being credited: a. b. i(3) c. (1/4) d. d (8) e. 8 f. (12) 2. The present value of 200 paid at the end of 10 years, plus the present value of 100 paid at the end of 20 years is 260. Determine the annual effective rate of interest. 3. Chloe deposits 15 dollars into a fund today and 30 dollars fifteen years later. Interest for the first 10 years is credited at an effective rate of 6% and an effective rate of 9% thereafter. Calculate the accumulated balance at the end of 40 years. 4. A fund earns interest according the following scheduling: a. Year 1: Nominal interest rate of 6% compounded semiannually b. Year 2: Force of interest of 5% C. Year 3: Nominal rate of discount of 8% compounded every other year d. Year 4: Effective rate of discount of 7% e. Year 5: Effective rate of interest of 2% Ron deposits 1 at time 0. What is the value in 5 years. 5. Bruce deposits 100 into a bank account. His account is credited interest at an annual Additional Problems: 1. For d = .09 calculate the following equivalent rates and state how often the interest or discount is being credited: a. b. i(3) c. (1/4) d. d (8) e. 8 f. (12) 2. The present value of 200 paid at the end of 10 years, plus the present value of 100 paid at the end of 20 years is 260. Determine the annual effective rate of interest. 3. Chloe deposits 15 dollars into a fund today and 30 dollars fifteen years later. Interest for the first 10 years is credited at an effective rate of 6% and an effective rate of 9% thereafter. Calculate the accumulated balance at the end of 40 years. 4. A fund earns interest according the following scheduling: a. Year 1: Nominal interest rate of 6% compounded semiannually b. Year 2: Force of interest of 5% C. Year 3: Nominal rate of discount of 8% compounded every other year d. Year 4: Effective rate of discount of 7% e. Year 5: Effective rate of interest of 2% Ron deposits 1 at time 0. What is the value in 5 years. 5. Bruce deposits 100 into a bank account. His account is credited interest at an annual

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