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- a. What is the effective annual interest rate if the nominal annual interest rate is 10%, compounded quarterly? b. What is the effective annual interest rate if the nominal annual interest rate is 10%, compounded monthly? c. What is the effective annual interest rate if the nominal annual interest rate is 10%, compounded daily? d. What is the effective annual interest rate if the nominal annual interest rate is 10%, compounded continuously? e. At what compounding period does the effective annual interest rate very closely approximate continuous compounding? (Consider to the nearest 0.0001)How much money will you have in seven yearsif you deposit $7,000 in the bank at 8.5% interestcompounded daily?If you borrowed $24,000 at 12% annual interest. You agreed to repay the loan with five equal annual payments. How much of the total amount repaid is interest? How much of the third annual payment is interest, and how much principal is there? If you decided to pay off your loan after the third payment, how much will you pay?
- You deposit $200 each month into an account earning 5% interest compounded monthly. a) How much will you have in the account in 15 years? $ b) How much total money will you put into the account? $ c) How much total interest will you earn? $1. A bank charges 1.5% per month on a loan. Find the equivalent nominal rate of interest. 2. A financing company charges 1.5% per month on a loan. Find the equiv alent effective rate of interest. 3. A nominal rate of 12% compounded monthly is equal to an effective rate of interest. 4. Convert 16% compounded semi-annually to equivalent nominal rate which is compounded daily.What effective annual interest rate corresponds to the following situations? a. nominal interest rate of 10% compounded semi-annually b. nominal interest rate of 6% compounded monthly c. nominal interest rate of 8% compounded quarterly
- 1.What is the accumulated amount of an annuity paying P30,000 at the end of each year for 7 years with interest at 15% compounded annually? 2.Miss Dela Cruz borrows P500,000 at 12% compounded annually agreeing to repay the loan in 15 equal annual payments. How much of the original principal is still unpaid after he has made the 8th payment.2.If the rate of interest is 8% compounded quarterly, find the nominal rate of interest.QUESTION 1 Muhammad takes out a loan of $ 2,130, at 8% simple interest, for 8 years. How much will he pay back at the end of year 8? QUESTION 2 Calculate the amount of interest on an investment of AED 103,971 at 8% simple interest for 5 years. QUESTION 3 If you deposit today $7,335 in an account for 6 years and at the end accumulate $10,885, how much compound interest rate (rate of return) you earned on this investment ? QUESTION 4 You will deposit 12,025 at 10% simple interest rate for 9 years, and then move the amount you would receive to an investment account at 12 % compound rate for another 3 years. How much money would you have at the end of the entire period ?
- Compute the future value of the following deposits made today:a. $10,000 at 6.75% compounding annually for 10 yearsb. $10,000 at 6.75% compounding quarterly for 10 yearsc. $10,000 at 6.75% compounding monthly for 10 years Compute the interest earned on the deposits made.To have a total of $10,000 after 8 years, what principal do you have to deposit in a 4.5 percent saving account compounded monthly?1. Accumulate P 3,000 for 9 years at 6 percent interest compounded quarterly. How much is the compound interest earned? 2. Determine the nominal rate which if converted quarterly could be used instead of 12 percent compounded monthly. What is the corresponding effective rate?