Question

For each of the following cases, indicate (a) to what rate columns, and (b) to what...

For each of the following cases, indicate (a) to what rate columns, and (b) to what number of periods you would refer in looking up the interest factor.

1. In a future value of 1 table:

Annual Rate

Number of Years Invested

Compounded

(a) Rate of Interest

(b) Number of Periods

a.

10% 9 Annually

enter percentages

%

enter the number of periods

b.

12% 7 Quarterly

enter percentages

%

enter the number of periods

c.

8% 18 Semiannually

enter percentages

%

enter the number of periods


2. In a present value of an annuity of 1 table: (Round answers to 1 decimal place, e.g. 458,58.1.)

Annual Rate

Number of Years Invested

Number of Rents Involved

Frequency of Rents

(a) Rate of Interest

(b) Number of Periods

a.

11% 27 27 Annually

enter percentages

%

enter the number of periods

b.

9% 15 30 Semiannually

enter percentages

%

enter the number of periods

c.

12% 6 24 Quarterly

enter percentages

%

enter the number of periods

Homework Answers

Answer #1

Annual Rate

No. of years invested

Compounded

(a)Rate of interest

(b)Number of periods

a.

10%

9

Annually

10%

9

b.

12%

7

Quarterly

3%

28

c.

8%

18

Semi annually

4%

36

Annual Rate

No. of years invested

No. of rents involved

Frequency of rents

(a)Rate of interest

(b)Number of periods

a.

11%

27

27

Annually

11.00%

27

b.

9%

15

30

Semi annually

4.50%

30

c.

12%

6

24

Quarterly

3.00%

                     24

  I hope it is useful to u if u have any doubt pls comment give me up thumb

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