Question
Q1: An investor makes a 2-year deposit of $13,658. The bank is paying an interest rate of 6% per year, compounding monthly. Calculate i (interest
Q1:
An investor makes a 2-year deposit of $13,658. The bank is paying an interest rate of 6% per year, compounding monthly.
Calculate "i" (interest rate per period) correct to 4 decimal places (as a %)
Q2:
An investor makes a 22 year deposit of $11,672. The bank is paying an interest rate of 5% per year, compounding half yearly.
Calculate "i" (interest rate per period) correct to 4 decimal places.
Q3:
An investor makes a 12 year deposit of $7,788. The bank is paying an interest rate of 12% per year, compounding quarterly.
Calculate "i" (interest rate per period) correct to 4 decimal places.
Q4;
An investor makes a 37 year deposit of $61,240. The bank is paying an interest rate of 8% per year, compounding twice a year.
Calculate "i" (interest rate per period) correct to 4 decimal places.
Q5:
Dora needs to accumulate $23,402 in 5 years from now. Assuming an interest rate of 7% pa how much does Dora need to invest today? Round to the nearest dollar.
Try the compound again.
Q6.
Dora needs to accumulate $14,147 in 11 years from now. Assuming an interest rate of 14% pa with quarterly compounding, how much does Dora need to invest today ? Round to the nearest dollar.
Q7.
Convert 8.84% compounding half yearly to an Effective Annual Rate (EAR) correct to TWO decimal places (as a %)
please help thank you so much
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