FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Find the effective interest rate for a loan for 4 years compounded semiannually at an annual rate of 5%. Future value or compound amount of

Find the effective interest rate for a loan for 4 years compounded semiannually at an annual rate of 5%.

Future value or compound amount of $1.00

Dialog content starts

Rate per period

Periods

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

5.00%

5.50%

1

1.00500

1.01000

1.01500

1.02000

1.02500

1.03000

1.03500

1.04000

1.04500

1.05000

1.05500

2

1.01003

1.02010

1.03023

1.04040

1.05063

1.06090

1.07123

1.08160

1.09203

1.10250

1.11303

3

1.01508

1.03030

1.04568

1.06121

1.07689

1.09273

1.10872

1.12486

1.14117

1.15763

1.17424

4

1.02015

1.04060

1.06136

1.08243

1.10381

1.12551

1.14752

1.16986

1.19252

1.21551

1.23882

5

1.02525

1.05101

1.07728

1.10408

1.13141

1.15927

1.18769

1.21665

1.24618

1.27628

1.30696

6

1.03038

1.06152

1.09344

1.12616

1.15969

1.19405

1.22926

1.26532

1.30226

1.34010

1.37884

7

1.03553

1.07214

1.10984

1.14869

1.18869

1.22987

1.27228

1.31593

1.36086

1.40710

1.45468

8

1.04071

1.08286

1.12649

1.17166

1.21840

1.26677

1.31681

1.36857

1.42210

1.47746

1.53469

9

1.04591

1.09369

1.14339

1.19509

1.24886

1.30477

1.36290

1.42331

1.48610

1.55133

1.61909

10

1.05114

1.10462

1.16054

1.21899

1.28008

1.34392

1.41060

1.48024

1.55297

1.62889

1.70814

11

1.05640

1.11567

1.17795

1.24337

1.31209

1.38423

1.45997

1.53945

1.62285

1.71034

1.80209

12

1.06168

1.12683

1.19562

1.26824

1.34489

1.42576

1.51107

1.60103

1.69588

1.79586

1.90121

13

1.06699

1.13809

1.21355

1.29361

1.37851

1.46853

1.56396

1.66507

1.77220

1.88565

2.00577

14

1.07232

1.14947

1.23176

1.31948

1.41297

1.51259

1.61869

1.73168

1.85194

1.97993

2.11609

15

1.07768

1.16097

1.25023

1.34587

1.44830

1.55797

1.67535

1.80094

1.93528

2.07893

2.23248

16

1.08307

1.17258

1.26899

1.37279

1.48451

1.60471

1.73399

1.87298

2.02237

2.18287

2.35526

17

1.08849

1.18430

1.28802

1.40024

1.52162

1.65285

1.79468

1.94790

2.11338

2.29202

2.48480

18

1.09393

1.19615

1.30734

1.42825

1.55966

1.70243

1.85749

2.02582

2.20848

2.40662

2.62147

19

1.09940

1.20811

1.32695

1.45681

1.59865

1.75351

1.92250

2.10685

2.30786

2.52695

2.76565

20

1.10490

1.22019

1.34686

1.48595

1.63862

1.80611

1.98979

2.19112

2.41171

2.65330

2.91776

21

1.11042

1.23239

1.36706

1.51567

1.67958

1.86029

2.05943

2.27877

2.52024

2.78596

3.07823

22

1.11597

1.24472

1.38756

1.54598

1.72157

1.91610

2.13151

2.36992

2.63365

2.92526

3.24754

23

1.12155

1.25716

1.40838

1.57690

1.76461

1.97359

2.20611

2.46472

2.75217

3.07152

3.42615

24

1.12716

1.26973

1.42950

1.60844

1.80873

2.03279

2.28333

2.56330

2.87601

3.22510

3.61459

25

1.13280

1.28243

1.45095

1.64061

1.85394

2.09378

2.36324

2.66584

3.00543

3.38635

3.81339

26

1.13846

1.29526

1.47271

1.67342

1.90029

2.15659

2.44596

2.77247

3.14068

3.55567

4.02313

27

1.14415

1.30821

1.49480

1.70689

1.94780

2.22129

2.53157

2.88337

3.28201

3.73346

4.24440

28

1.14987

1.32129

1.51722

1.74102

1.99650

2.28793

2.62017

2.99870

3.42970

3.92013

4.47784

29

1.15562

1.33450

1.53998

1.77584

2.04641

2.35657

2.71188

3.11865

3.58404

4.11614

4.72412

30

1.16140

1.34785

1.56308

1.81136

2.09757

2.42726

2.80679

3.24340

3.74532

4.32194

4.98395

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Math

Business Math

Authors: Cheryl Cleaves, Margie Hobbs, Jeffrey Noble

10th edition

133011208, 978-0321924308, 321924304, 978-0133011203

More Books

Students also viewed these Accounting questions

Question

★★★★★
A machine with a book value of $126,000 has an estimated six-year life. A proposal is offered to sell the old machine for $84,000 and replace it with a new machine at a cost of $145,000. The new...

Answered: 1 week ago

Question

★★★★★
=+What is the expected value of purchasing a Thursday ticket?

Answered: 1 week ago

Question

★★★★★
A professor of engineering economics owns a 1996 automobile. In the past 12 months, he has paid $2000 to replace the transmission, bought two new tires for $160, and installed a new tape deck for...

Answered: 1 week ago

Question

★★★★★
i feel like this is super easy but for some reason i'm not getting it correct, but if i had to backsolve for this question how would i do that. like say i wasn't given 7% Question 3 1-year T-bill at...

Answered: 1 week ago

Question

★★★★★
Question 2 Presented below are selected transactions at Skysong Company for 2017. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2007. The machine cost 62,780 on that date. It...

Answered: 1 week ago

Question

★★★★★
Scenario Larry, the head of Marketing has heard about you. And at TNH Tires, like much of the rest of the world, the reward for good work is more work. Larry: Thank you so much for making time for...

Answered: 1 week ago

Question

★★★★★
Pick a resource and data set that CloudWatch monitors and collects. How would the use of CloudWatch make a difference in your cloud maintenance? How will you use the data gathered by CloudWatch? Will...

Answered: 1 week ago

Question

★★★★★
What is the overhead application rate per direct labor hour? * (1 Point) BREAD Co. uses a job order costing system. At the beginning of January, the company had 2 jobs in process with the following...

Answered: 1 week ago

Question

★★★★★
Feedback Print A 5 nC charge is located at the origin. What are the electric fields at the positions A = (10 cm, 0 cm), B = (-10 cm, 10 cm), and C = (-10 cm, -10 cm)? Write each electric field vector...

Answered: 1 week ago

Question

★★★★★
A History Achievement Test out of 80 points is administered to a Grade 10 class of 30 students. Their scores are randomly listed below. 78 46 61 49 58 61 64 58 55 80 40 52 78 55 63 55 49 59 64 58 53...

Answered: 1 week ago

Previous Question Next Question