Question

Consider a CD paying a 5.5% APR compounded monthly.

(a) Find the periodic interest rate.

(b) Find the future value of the CD if you invest $3000 for a term of five yeaR

Answer #1

(a) given apr= 5.5%

periodic interest rate= 5.5/12

= 0.458%

(b)

please like ?

Consider a CD paying a 5.7% APR compounded monthly.
(a) Find the periodic interest rate.
(b) Find the future value of the CD if you invest $ 5000 for a
term of three years

Find the interest rates in the following situations.
a. APR = 8%, compounded monthly. Find the effective annual
interest rate.
b. Nominal rate is 10% compounded quarterly. Find the effective
semiannual rate.
c. The effective annual interest rate is 11.02% and compounding
is monthly. Find the nominal interest rate.
d. r = 6% and compounding is monthly. Find the effective
quarterly interest rate.

Consider a $100 investment paying an EAR of 3.5% what is the
equivalent APR compounded monthly?

You invest $1,300 at a 6% annual interest rate, stated as an
APR. Interest is compounded monthly. How much will you have in 1
year? In 1.5 years? (Do not round intermediate calculations. Round
your answers to 2 decimal places.)

Bank 1 is offering loans at 2% APR with monthly compounding.
Bank 2 has a CD paying an interest rate of 3% APR with semi-annual
compounding. Can you make a riskless profit by borrowing and
lending? Suppose you borrowed $10,000 from Bank 1 and invested it
in Bank 2. How much money will you have after one year?

Consider a 30-year mortgage at an interest rate of 8% compounded
monthly with a $1200 monthly payment. What is the total amount paid
in interest?
a.
$236,403.75
b.
$249,448.74
c.
$268,459.81
d.
$289,450.19

Assume that you have $3000 to invest for 5 years. You could
purchase a 5-year CD with a guaranteed interest rate of 2.52%
compounded monthly. On the other hand, if you are willing to face
the risk of actually losing your money, you could invest it in the
stock market which has an historical return rate of about 6.5% per
year. Think of this as investing your money in a
non-guaranteed account that pays 6.5% APR compounded
annually.
With the...

1)
Find the corresponding APR for an APY of 4 % if the interest is
compounded...
a) Yearly?
b) Monthly?
c) Weekly?
d) daily?

Find the future value of $ 1,000 after 5 years at 7% annual
interest, compounded monthly future value is:
5 years at 7% annual interest compounded daily future value
is:
20 years at 5% annual interest, compounded monthly future value
is:
50 years at 5% annual interest, compounded monthly future value
is:

Find the APR, or stated rate, in each of the following
cases:
a.
An effective interest of 16% compounded semiannually
b.
An effective interest of 18% compounded monthly
c.
An effective interest of 14% compounded weekly
d.
An effective interest of 9% with continuous compounding

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