Question
Scenario: You make a $2,000 deposit to a retirement account today. The account earns a 7.65% rate of interest (i.e. APR) compounded quarterly. What is
Scenario: You make a $2,000 deposit to a retirement account today. The account earns a 7.65% rate of interest (i.e. APR) compounded quarterly. What is the value of the investment in 6 years?
Scenario: Suppose you want to take out a $150,000 semi annual loan from a bank. The maximum semi-annual payment you can afford is 7,000. The market interest rates are 7.90 APR.
Under these conditions, what would the term of this loan be? (round answer to the nearest whole year)
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A First Course in Quantitative Finance
Authors: Thomas Mazzoni
1st edition
9781108411431, 978-1108419574
