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d. A security has a cost of $1,000 and will return $3,000 after 6 years. What rate of return does the security provide7 Round your

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d. A security has a cost of $1,000 and will return $3,000 after 6 years. What rate of return does the security provide7 Round your answer to two decimal places 44.22 k. Five banks offer nominal rates of 6% on deposits, but A pays interest annually, B pays semiannually, Cpays quarterly, D pays monthly, and E pays daily. Assume 365 days in a year. 1. What effective annual rate does each bank pay? If you deposit $6,000 in each bank today, how much will you have in each bank at the end of 1 year? 2 years? Round your answers to two decimal places B C D E % 90 $ $ 5 $ $ $ EAR FV after 1 year $ FV after 2 years 2. If the TVM is the only consideration, what nominal rate will cause all of the banks to provide the same effective annual rate as Bank A? Round your answers to two decimal places. D B Nominal rate 3. Suppose you don't have the $6,000 but need it at the end of 1 year You plan to make a series of deposits - annually for A, semiannually for 8, quarterly for C, monthly for D, and daily for E - with payments beginning today. How large must the payments be to each bank? Round your answers to the nearest cent, D A 5 Payment 4. Even if the five banks provided the same effective annual rate, would a rational investor be indifferent between the banks frequently It is more likely that an investor would prefer the bank that compounded Nex LE what we want this content with Round your att HER with a Festw wyty w tyas what 1.000 nyourwa 4. 1250 11767 1. Pathu that there 1200 1300 2 7547 WS tului de w A100 2 124 atv VA MacBook Pro Q O ENGAGHINTAP Tento any Gw1 L www OX CH CH 1 24 MacBook Pro th CENGAGEMINOTA Activity Tone wall money OX The mother who edhe 31.com Bot your . 100 1006 5 . 120 1 1123 2 1 . 1000 1000 1000 . B 8 13 23 Other Women There . 24 AIP WINACTMNDIA O Factment of money . G 30.11 way that parameters to rew. The team at maturants of my upanan w

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