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?

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

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