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Solve for PMT please! k. Five banks offer the same nominal rate on deposits, but A pays interest annually, B pays semiannually, C pays quarterly,
Solve for PMT please!
k. Five banks offer the same nominal rate on deposits, but A pays interest annually, B pays semiannually, C pays quarterly, D pay (1) Calculating the effective annual rate for each bank and the future values of the deposit at the end of 1 year and 2 years Nominal rate (INOM) 10% Deposit (PV) $4,500 Number of days per year 365 B EAR FV after 1 year FV after 2 years A 10.00% $4,950.00 $5,445.00 10.25% $4,961.25 $5,469.78 10.38% $4,967.16 $5,482.81 D 10.47% $4,971.21 $5,491.76 E 10.52% $4,973.20 $5,496.16 (2) Calculating the nominal rates that will cause all of the banks to provide the same effective annual rate as Bank A B C D E Nominal rate (INOM) 9.76% 9.65% 9.57% 9.53% (3) Calculating the amount of payment to be made annually for A, semiannually for B, quarterly for C, monthly for D, and daily for E Needed amount (FV) $4,500 Number of years (N) 1 A B D E Payment (PMT)Step by Step Solution
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