Question
Sally invested 5000 into a fixed APR savings account 8years ago. Today the account has a balance of 6363$. given that his account offered quarterly
Sally invested 5000 into a fixed APR savings account 8years ago. Today the account has a balance of 6363$. given that his account offered quarterly compounding of interest, the APR on this account is?
The APR on this account is ______% (4 decimals)
Suppose there is a financial security (zero-bond) that will pay back 2000$ in 5 year from today. All else constant for a given nominal interest rate, a change from quarterly compounding to monthly compounding will cause the current price of this security to ____?
A) Remain the smae
B) Either increase or decrease depending on the number of years until the money is to be received
C) None of the probabilities
D) Decrease
E) Increase
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