Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

just the second question please 1:10:02 The AVEX token has a price of $1,000 and pays interest of $0.000085 per token every 6 seconds. Compounded

image text in transcribed
image text in transcribed
just the second question please
1:10:02 The AVEX token has a price of $1,000 and pays interest of $0.000085 per token every 6 seconds. Compounded interest can only be earned if claimed and reinvested. If interest is not claimed $0.000085 will be accumulated every 6 seconds per $1,000. After being claimed, the accumulated amount is paid out instantaneously and reinvested in the token. Suppose an investor holding one AVEX token claims the interest only every 24 hours and reinvests interest payments into the AVAX token instantaneously after being claimed. How much would the investor have lost in interest proceeds if s/he claims the interest only every 24h instead of every 6 seconds over the first six months (181 days) of a new year. Hint: To solve the question, you need calculate the effective rate for 6 seconds and for 24 hours respectively. Then calculate effective semi-annual rate for both. Recall also the effect between continuous and discrete compounding. (Note: Please retain at least six decimal places in your calculations) O a. $ 12.6723 h $ 0.0085 Sally Saver invested $5000 into a fixed APR savings account 7 years ago. Today the account has a balance of $6468. Given that his account offered quarterly compounding of interest, the APR on this account is? (Note: Please retain at least 4 decimal places in your calculations and at least 2 decimal places in the final answer.) % The APR on this account is od with 12 years to

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

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

Project Financing Analyzing And Structuring Projects

Authors: Frank J Fabozzi, Carmel De Nahlik

1st Edition

9811232393, 9789811232398

More Books

Students also viewed these Finance questions

Question

Show that standard Brownian motion is a Martingale.

Answered: 1 week ago