Compound Interest Periodic and Nominal Interest Rates 32. A manufacturer invested this year's profits of $64,000 in a fund that matures to $84,500 in two years. Calculate the periodic and nominal interest rates if the interest is compounded daily. 33. Rosemarie received an excellent interest rate for her car loan of $11,000. Calculate the nominal interest rate and periodic interest rate if it accumulated to 11,170 in five month and interest is compounded quarterly Calculating Number of Compounding Periods and Time Periods 34. How long in years will it take for a loan of $215,000 to accumulate to at least $271,825 at 5.27% compounded annually? 35. Your bank offers you a personal loan of $5,000 at an interest rate of 6% compounded monthly. If the interest changed on the loan was $2,160.22, calculate the term of the loan in years. Effective Interest Rate 36. What is the effective rate of 8.25% compounded semi-annually? 37. What is the effective rate of 7.95% compounded daily? 38. What is the effective rate of 11.8% compounded monthly? Equivalent Interest Rate 39. What nominal interest rate compounded semi-annually would place investors in exactly the same financial position as 8.25% compounded annually? 40. What nominal interest rate compounded semi-annually would place you in the same financial position as 6.16% compounded quarterly? Page 11 Types of Annuities 41. Identify the type of annuity and calculate the number of payments during the term: a.)Karl pays $280.00 for a lease at the beginning of every month for 3 years and 6 months at 7% compounded annually. b. )Aida pays $1,000 at the end of every three months for 5 years and 9 months towards her student loan. At 4.5% compounded quarterly. c. )Kapil receives $1,500 at the end of every month for 15 years from a retirement fund at 4% compounded semi-annually. Future Value Ordinary Simple 42. Suppose you open an account into which you deposit $200 at the end of each month for 10 years. If the account pays 7.5% compounded monthly, how much will be in the account at the end of the 10 year period? 43. An annuity is created by depositing $4,500 at the end of each quarter for 12 years at an interest rate of 4.75% quarterly. What is the value of the annuity at the end of the 12 years and how much of the value is interest