Question
Instructions Complete the following problems using either a financial calculator or a spreadsheet program. Do not use interim rounding, state your answers as positive values,
Instructions Complete the following problems using either a financial calculator or a spreadsheet program. Do not use interim rounding, state your answers as positive values, to two decimal places for dollar or period values and four places for percentages stated as decimals; do not label answers with symbols such as $ or %. For example, 10.5% should be input as .1050.
1. When comparing two investments with the same effective rate, one with a 4-year term and semi-annual compounding and one with a 2-year term and quarterly compounding, the nominal rate of the 4-year term instrument is ____ the nominal rate of the 2-year term instrument.
A. Lower than
B.the same as
C. higher than
2. Seamus McIntyre started saving for retirement today by investing $241 in an account earning 0.0888. He plans to continue with monthly contributions of the same amount for 32 years. The present value of his investment is:
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