Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please answer with excel 21. You borrow $10,000 from a bank. You agree to pay $1,250 every six months for the next five years. What
Please answer with excel
21. You borrow $10,000 from a bank. You agree to pay $1,250 every six months for the next five years. What is the semiannually compounding interest rate (i.e., the nominal interest rate or r2) that the bank is charging you? a) 8.74% b) 4.27% c) 8.56% d) 25.00% 22. You want to invest $5,000 in a mutual fund. Mutual Fund A has an expected return of 6.75%, compounded monthly (r12 = 6.75%). Mutual Fund B has an expected return of 6.70% compounded weekly (r52 = 6.70%). What is the difference in the effective annual rates between the returns of Mutual Fund A and Mutual Fund B? a) 0.4628% b) 0.0500% c) 0.0532% d) 0.0379% 23. What nominal rate, if compounded weekly, would you give an effective annual rate of 8.5%? a) 7.5817% b) 8.1644% c) 9.8763% d) 10.0032%Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started