Question
Compute the interest rate at which $500 per month payments should grow to accumulate savings of $50,000 in 3 years. Payments are made at the
Compute the interest rate at which $500 per month payments should grow to accumulate savings of $50,000 in 3 years. Payments are made at the end of each month. (Note: Round your answer to two decimal places.)
EFFECT
DISC
RATE
NOMINAL
| A | B | |
|---|---|---|
| 1 | Data | Description |
| 2 | NPER | 3 x 12 = 36 |
| 3 | PMT | 500 |
| 4 | PV | 0 |
| 5 | FV | 50,000 |
| 6 | [Type] | 0 |
| 7 | Interest Rate | = |
| 8 | = % |
Compute the stated interest rate on a promotional credit card if the effective interest rate is 8.0%. Assume that interest is compounded (a) semi-annually and (b) quarterly. (Note: Round your answers to two decimal places.)
NOMINAL
RATE
EFFECT
DISC
| A | B | |
|---|---|---|
| 1 | Data | Description |
| 2 | Compounded semi-annually | |
| 3 | Interest Rate | = |
| 4 | = % | |
| 5 | Compounded quarterly | |
| 6 | Interest Rate | = |
| 7 | = % | |
| 8 |
Compute the actual interest rate paid or earned on a mortgage loan if the bank states that the nominal rate is 10%, and the interest is compounded (a) semi-annually and (b) quarterly. (Note: Round your answers to two decimal places.)
EFFECT
DISC
RATE
NOMINAL
| A | B | |
|---|---|---|
| 1 | Data | Description |
| 2 | Compounded semi-annually | |
| 3 | Interest Rate | = |
| 4 | = % | |
| 5 | Compounded quarterly | |
| 6 | Interest Rate | = |
| 7 | = % | |
| 8 |
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Finance And Financial Markets
Authors: Keith Pilbeam
3rd Edition
023023321X, 978-0230233218
