Question
Round the answer to two decimal places. PLEASE SHOW ME EQUATIONS 1) You are considering an investment that has a nominal annual interest rate of
Round the answer to two decimal places. PLEASE SHOW ME EQUATIONS
1) You are considering an investment that has a nominal annual interest rate of 7.53 percent, compounded semiannually. Therefore, the effective annual rate, or EAR (annual percentage yield) is_____.
2) How many years will the following take?
$574 to grow to $23,443if invested at 12.46 percent, compounded annually.
3) A commercial bank will loan you $45,817 for 6 years to buy a car. The loan must be repaid in equal monthly payments at the end of the month. The annual interest rate on the loan is 10.70 percent of the unpaid balance. What is the amount of the monthly payments?
4) What is the present value of the following future amount?
$337,517,to be received 12 years from now, discounted back to the present at 7 percent, compounded annually.
5) For the next 14 years, you decide to place $1,796 in equal year-end deposits into a savings account earning 4.08 percent per year. How much money will be in the account at the end of that time period?
6) What is the present value of the following annuity?
$4,910 every half year at the end of the period for the next 10 years, discounted back to the present at 15.06 percent per year, compounded semiannually.
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