Question

At a certain interest rate compounded semi- annually, P5,000 will amount to P20,000 after 10 years. Find a) the nominal interest rate b) the effective interest rate c) the equivalent amount after 15 years. Answer P40,029.72

Answer #1

Ava invested $1750 into an RRSP that earned interest at 5%
compounded semi-annually for eight years.
a) Find the balance of the account at the end of the period.
b) How much interest is earned?
c) What is the effective rate of interest?

1. Suppose that P200,000.00 is invested at a certain rate of
interest compounded annually for two years. If the accumulated
interest at the end of 2 years is P42,000.00, find the rate of
interest.
2. A loan for P170,000 is to be paid in three years
at the amount of P185,000 compounded annually. What is the
effective rate of money?
3. If P3000 accumulates to P4500 when invested at a simple
interest for ten years, what is the rate of interest?

Compute the nominal annual rate of interest compounded semi
annually on a loan of $48,000 repiad in installements of $4,000 at
the end of every sixc months for ten years Round answer to 2
decimal places.

Phineas invests $2,000 at a nominal annual interest
rate of 4% compounded semi annually.
Ferb invests $2,500 at an effective annual rate of 3%. Candace can
earn an effective annual interest
rate of 6%. How much should Candace invest so that there is a point
in time in the future where
all 3 have the exact same dollar amount at the exact same time?
Hint: First find when Phineas and
Ferb have the same balance.

A savings account pays interest at the rate os 5% per year,
compounded semi-annually. The amount that should be deposited now
so that R250 can be withdrawn at the end of every six months for
the next 10 years is

3. If $2,800 is discounted back 4 years at an interest rate of
8% compounded semi-annually, what would be the present value?
. 4. Consider a newlywed who is planning a wedding anniversary
gift of a trip to Canada for her husband at the end of 10 years.
She will have enough to pay for the trip if she invests $4,000 per
year until that anniversary and plans to make her first $4,000
investment on their first anniversary. Assume her...

Problem 1.10 You deposit $5,000 in an account that earns 5%
interest compounded annually in years 1 and 2, and thereafter a
continuous rate δ(t) = 2/(t + 1) (t ≥ 0). What is the value of the
account after 5 years?
Problem 1.11 Suppose an initial investment of $100 grows
according to the accumulated amount function A(t) = 100(1 + 0.05t)
(t ≥ 0). (a) Find the effective rate of interest earned during the
5th year i5. (b) Find...

Compute the effective annual interest rate for 4% compounded
semi-annually.
Select one:
a. 4.32%
b. 4.04%
c. 10.40%
d. 8.16%

What rate compounded quarterly is equivalent to 6%
compounded semi annually?

An investment of
$4885.45
earns interest at
4%
per annum compounded
semi-annually
for
4
years. At that time the interest rate is changed to
7.2%
compounded
quarterly.
How much will the accumulated value be
4.5
years after the change?
The accumulated value is
$.
(Round the final answer to the nearest cent as needed. Round
all intermediate values to six decimal places as needed.)

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 3 minutes ago

asked 3 minutes ago

asked 6 minutes ago

asked 13 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago