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Money is invested in a savings account with a nominal interest rate of 8% convertible semi-annually for three years. The annual effective rate of inflation

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Money is invested in a savings account with a nominal interest rate of 8% convertible semi-annually for three years. The annual effective rate of inflation is 4.7% for the first year, 8% for the second year, and 7.8% for the third year. Calculated the "real" annual effective rate of interest earned over the three years. Give answer in decimal form with 4 decimal places. Calculate the accumulated value of an investment of 4,500 after 14 years assuming the rate of interest is 7.5% p.a. compounded semi-annually for the first 5 years, the rate of discount is 5.5% p.a.compounded weekly for the next 4 years and force of interest is 6% for the final 5 years. Answer to the nearest cent. Laura lends Katie $6,000. Katie repays the loan in two payments. The first payment is $4,600 at the end of year 1 and the second payment is $2,200 at end of year 2. Laura immediately reinvests the money she receive at time 1 at an annual effective rate of 9%. Find the annual effective rate of interest on the loan. (4 decimal accuracy.) Number Find Laura's annual effective yield. (4 decimal accuracy.) Number Suppose that the "real" annual effective rate of interest is 1.5 % and the the annual effective rate of inflation is 2.7 %. Calculate the force of interest: Number (4 decimal accuracy) Calculate the real force of interest: Number -(4 decimal accuracy) Calculate the force of inflation: Number (4 decimal accuracy) Select which statement is always true Click for List the force of interest is always equal to the sum of the real force of interest plus the force of inflation the force of inflation is always larger than the force of interest the force of interest is always larger than the force of inflation the force of interest can never equal the force of inflation the real force of interest is always loss than the force of inflation

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