Question
Which of the following statements indicates a nominal rate of 5% annually? Review Later 5% per quarter 5% per year, compounded monthly Effective 5% per
Which of the following statements indicates a nominal rate of 5% annually?
Review Later
5% per quarter
5% per year, compounded monthly
Effective 5% per year, compounded semi-annually
5% per month, compounded daily
If you need $5,000 in 4 years time and your investment generate 6% interest per year, compounded semi-annually, how much do you need to put away today?
Which of the following best describes the annuity factor?
Review Later
A decimal number multiplied by a cash flow value to discount it back to the present value
The sum of all the discount factors in each period for a fixed number of periods
The rate of return used to discount future value back to the present value
The expected compound annual rate of return that will be earned on a project or investment
Whats the discount factor if you are going to receive $500 ten years from now with an 8% annual interest?
If a principal amount of $1,000 earns 6% per year compounded annually in the first 2 years and 3% in the last 2 years, how much will you have total at the end of year 4?
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