Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please give explanation to each! These all are together 7. The present value of an investment is $30,000, and its future value is $55,000 after
Please give explanation to each! These all are together
7. The present value of an investment is $30,000, and its future value is $55,000 after 7 years. If you know that the interest is paid semiannually and the expected inflation is 4%, then the real and nominal interest rates are and respectively. a. 4.42%,8.42% b. 4.24%,8.24% c. 3.98%,7.98% d. 3.80%,7.80% 5. A company borrowed $250,000 from a bank at an annual percentage rate of 6% with monthly payments for 3 years. The monthly payment in this case is a. $7,048.58 b. $7,291.20 c. $7,360.64 d. $15,105.74 4. You invested in a bank's certificate of deposit with an annual percentage rate of 8% and where the interest is paid quarterly. What is the effective annual rate at which you will earn every year from your investment? a. 8% b. 8.24% c. 8.28% d. 8.30% 2. If the annual percentage rate (APR) is 10% and the number of compounding periods per year (m) is 4 , then the periodic interest rate is a. 4% b. 2.5% c. 5% d. 40% 7. The present value of an investment is $30,000, and its future value is $55,000 after 7 years. If you know that the interest is paid semiannually and the expected inflation is 4%, then the real and nominal interest rates are and respectively. a. 4.42%,8.42% b. 4.24%,8.24% c. 3.98%,7.98% d. 3.80%,7.80% 5. A company borrowed $250,000 from a bank at an annual percentage rate of 6% with monthly payments for 3 years. The monthly payment in this case is a. $7,048.58 b. $7,291.20 c. $7,360.64 d. $15,105.74 4. You invested in a bank's certificate of deposit with an annual percentage rate of 8% and where the interest is paid quarterly. What is the effective annual rate at which you will earn every year from your investment? a. 8% b. 8.24% c. 8.28% d. 8.30% 2. If the annual percentage rate (APR) is 10% and the number of compounding periods per year (m) is 4 , then the periodic interest rate is a. 4% b. 2.5% c. 5% d. 40%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