Question

solve this on Excel please a.On site $ 1000 at compound interest for one year. On...

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?
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Janice V. bought a 5% $1000 twenty-year bond for $925. She reveived a semiannual dividend for...
Janice V. bought a 5% $1000 twenty-year bond for $925. She reveived a semiannual dividend for 8 years, then sold it immediately after the 16th dividend for $800. What rate of return did she make (a) Per semiannual period, and (b) per year(nominal)? Solve by hand, step by step, not using excel at all.
If you deposit $1000 per month into an investment account that pays interest at a rate...
If you deposit $1000 per month into an investment account that pays interest at a rate of 6% per year, compounded quarterly, how much will be in the account at the end of 5 years? a) Solve the question under the assumption that there is no inter-period compounding. b) Solve the question under the assumption that there is inter-period compounding.
Please write legibly and do a step-by-step procedure to solve these problems. 1. S2,000.00 is invested...
Please write legibly and do a step-by-step procedure to solve these problems. 1. S2,000.00 is invested now and left for eight years, at which time the principal is withdrawn. The interest has accrued is left for another eight years. If the effective annual interest rate is 5%, what will be the withdrawal amount at the end of the 16th year? 2. Joanna plans to deposit S500 in the bank now and another S1,000 for the next 2 years. If she...
PLEASE SOLVE IN EXCEL SHOW ALL WORK! MUST USE FORMULAS!! Thank you!! You are saving for...
PLEASE SOLVE IN EXCEL SHOW ALL WORK! MUST USE FORMULAS!! Thank you!! You are saving for retirement in 40 years. You deposit $20,000 in a bank account today that pays 3.5% interest, compounded semiannually. You leave those funds on deposit until you retire. You also contribute $5,000 a year to a pension plan for 20 years and then you stop making contributions to the fund. You leave your money in the pension fund until you retire. The pension plan grows...
Please show the work in excel be sure to use appropriate formulas to solve each exercise...
Please show the work in excel be sure to use appropriate formulas to solve each exercise or problem. A1 If you deposit $12,000 in a bank account that pays 10% interest annually, how much will be in your account after 7 years? A2.    What is the present value of a security that will pay $10,000 in 20 years at an interest rate of 8%? A3.                 Find the future value of the following ordinary annuities: $600 per year for...
Instructions: use the correct Compound interest table to solve -Future value of 1 (future value of...
Instructions: use the correct Compound interest table to solve -Future value of 1 (future value of a single sum) -Present value of 1 (present value of a single sum) -Future value of an ordinary annuity of 1 -Present value of an ordinary annuity of 1 -Present value of an annuity Due of 1 A. If $4,000 is deposited into an investment account yielding 10% every 6 months starting on 1/1/2018, what amount will be available in the investment account in...
1. Prove: A constant rate of simple interest results in an effective rate of interest that...
1. Prove: A constant rate of simple interest results in an effective rate of interest that is decreasing with respect to time. 2. An accumulation function is of the form a(t) = xt3 + yt2 + z, x, y, z ∈ IR. Katrina invested $5000 in an account that is subject to this accumulation function. At the end of 10 years, she has $31,000 in the account. Mackenzie, on the other hand, deposited $3,000 in the same account but left...
Mini Case 2: Excel Hydro Inc. Unit 8 (6% of the grade) Excel Hydro took a...
Mini Case 2: Excel Hydro Inc. Unit 8 (6% of the grade) Excel Hydro took a loan contract which requires a payment of $40 million plus interest two years after the contract's date of issue. The interest rate on the $40 million face value is 9.6% compounded quarterly. Before the maturity date, the original lender sold the contract to a pension fund for $43 million. The sale price was based on a discount rate of 8.5% compounded semi-annually from the...
Mini-Case Analysis 2: Excel Hydro Inc. Excel Hydro took a loan contract which requires a payment...
Mini-Case Analysis 2: Excel Hydro Inc. Excel Hydro took a loan contract which requires a payment of $40 million plus interest two years after the contract's date of issue. The interest rate on the $40 million face value is 9.6% compounded quarterly. Before the maturity date, the original lender sold the contract to a pension fund for $43 million. The sale price was based on a discount rate of 8.5% compounded semi-annually from the date of sale. Excel Hydro is...
You are a young personal financial adviser. Molly, one of your clients approached you for consultation...
You are a young personal financial adviser. Molly, one of your clients approached you for consultation about her plan to save aside $450,000 for her child’s higher education in United States 15 years from now. Molly has a saving of $120,000 and is considering different alternative options: Investment 1: Investing that $120,000 in a saving account for 15 years. There are two banks for her choice. Bank A pays a rate of return of 8.5% annually, compounding semi-annually. Bank B...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT