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What annual effective interest rate is equivalent to a nominal annual discount rate of 4% compounded quarterly? Give your answer as a percentage rounded to
What annual effective interest rate is equivalent to a nominal annual discount rate of 4% compounded quarterly? Give your answer as a percentage rounded to four places (i.e. X.XXXX%). Do not include the percent sign in BlackBoard. A deposit of 200 is made at time t = 0 and grows at a force of interest equal to 8% per year. What is the value of the deposit at time t = 2 years? Give your answer as a decimal rounded to two places (i.e. X.xx). Given a nominal annual interest rate of 7.5% convertible every five days, determine the sum of the equivalent: (i) constant force of interest; and (ii) nominal annual discount rate compounded quarterly. Note: There are 365 days in a year. Give your answer as a decimal rounded to four places (i.e. X.XXXX). What annual effective discount rate is equivalent to a nominal annual interest rate of 8% compounded monthly? Give your answer as a percentage rounded to four places (i.e. X.XXXX%). What annual effective discount rate is equivalent to a nominal annual interest rate of 8% compounded monthly? Give your answer as a percentage rounded to four places (i.e. X.XXXX%). On the same date, an investor puts 100 into Fund X and 100 into Fund Y. Fund Y grows at an annual effective interest rate of i (where i>0), while Fund X grows at an annual simple interest rate of 1.05i. At the end of two years, the amount in Fund Y is equal to the amount in Fund X. What would be the amount in Fund Y at the end of 5 years? Give your answer as a decimal rounded to two places (i.e. X.xx)
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