solve this on Excel please a.On site $ 1000 at compound interest for one year. On thus accumulates $ 120 of interest. What is the nominal interest rate of this investment if the capitalization is quarterly?
b.You deposit $ 500 per year into a fund that has an effective interest rate of 6% per year. How much did you accumulate immediately after the 15th deposit?
a. P= $1,000
A= $1,120
t= 1 year
when compounded quarterly,
A= P(1+R/400)4t
1200= 1000(1+R/400)4
1.2= (1+R/400)4
1.0467= 1+R/400
R/400= 0.0467
R= 18.68%/annum
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