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Week 3 Question Bank Find the nominal interest rate for: 0.05% quarterly 0.12% monthly 0.004% daily 0.06% weekly 0.072% semi-annually Find the periodic interest rate
Week 3 Question Bank
Find the nominal interest rate for:
- 0.05% quarterly
- 0.12% monthly
- 0.004% daily
- 0.06% weekly
- 0.072% semi-annually
Find the periodic interest rate for:
- 15% compounded quarterly
- 18% compounded monthly
- 12% compounded weekly
- 5% compounded yearly
- 26% compounded daily
Find the compounding frequency for:
- 3 months compounding
- 12 months compounding
- 6 months compounding
- 18 months compounding
- 52 weeks compounding
- 365 days compounding
- Hope Dearborn invests $40,000 on January 1, 2007 in a savings account that earns interest of 8% compounded semi-annually. What will be the amount in the fund on December 31, 2012?
- If you purchased a $10,000 certificate of deposit (CD) today with a nominal annual interest rate of 12%, with monthly compounding, what would be the CD worth when it matures in 6 years?
- Find the following value for a lump sum assuming quarterly compounding:
- The future value of $500 invested at 8 percent for one year
- The present value of $1500 received after one year at 8 percent monthly compounded rate of interest
- What is the balance in an account at the end of 9 years if $7,500 is deposited today and the account earns 2% interest compounded annually?
- What is the future value at the end of 17 years of depositing $1,750 into a mutual fund today, assuming the fund is expected to earn 12% a year?
- What is the future value of $1,400 in 20 years assuming an interest rate of 9.6 percent, compounded semiannually?
- Calculate how much you would have in a savings account 5 years from now if you invest $1,000 today, given that the interest paid is 8 percent compounded annually.
- Suppose that $2,000 is invested at a rate of 4.2%, compounded quarterly. Assuming that no withdrawals are made, find the total amount after 3 years.
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