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For all the problems: Draw the cash flow diagram Show the procedure step by step. For the interest rates: use minimal 4 decimals. Nominal and
For all the problems: Draw the cash flow diagram Show the procedure step by step. For the interest rates: use minimal 4 decimals. Nominal and effective interest rates 1.- Calculate the effective annual interest rate of consider annual cash flows: a) An interest rate of 12% annual nominal, compounded semi-annually b) An interest rate of 12% annual nominal, compounded quarterly c) An interest rate of 12% annual nominal, compounded monthly 2.- You put $50 in your savings account at the end of each month. If the nominal interest rate is 14% annual nominal compounded monthly, what money will you have after 3 years of saving ? 3.- What money do you have to put in your savings account at the end of each month in order to have $10,000 after 2 years? The nominal interest rate is 18% annual nominal compounded monthly. 4.- A person deposited twelve years ago an amount X, that has grown to $9,500 now. Given that the interest rate over the 12 years was 4% annual nominal, compounded semi-annually: what was the originally deposited amount X
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