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Find the nominal annual rate of interest a) at which $1500 will grow to $1800 in...

Find the nominal annual rate of interest

a) at which $1500 will grow to $1800 in four years compounded compounded monthly

b) at which money will double in seven years if compounded quarterly

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Answer #1

a.

Nominal Interest rate at which $1500 will grow to $1800 in four years is calculated in excel and screen and screen shot provided below:

Nominal Interest rate is 4.66%.

b.

Supose value of deposit today is $100 and future value is $200

Nominal Interest rate at which money will double in seven years is calculated in excel and screen and screen shot provided below:

Nominal Interest rate is 10.03%.

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