After contributing $3,415 at the end of every 6 months into an RRSP for the past 30 years, Nasir has accumulated $703,816.63. Determine the daily compounded nominal rate that was associated with the account. (a) 6.95% (b) 7.13% (c) 1.33% (d) 1.12%
After contributing $3,415 at the end of every 6 months into an RRSP for the past 30 years, Nasir has accumulated $703,816.63. Determine the daily compounded nominal rate that was associated with the account. (a) 6.95% (b) 7.13% (c) 1.33% (d) 1.12%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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After contributing $3,415 at the end of every 6 months into an RRSP for the past 30 years, Nasir has accumulated $703,816.63. Determine the daily compounded nominal rate that was associated with the account.
(a) 6.95%
(b) 7.13%
(c) 1.33%
(d) 1.12%
2. The effective rate that is equivalent to a nominal rate of 3.25% compounded weekly is:
(a) 3.30%
(b) 2.31%
(c) 1.02%
(d) 4.24%
3. Which statement is FALSE?
A sinking fund:
(a) can be either an
(b) can be set up to clear a debt.
(c) always involves a maturity value.
(d) shows in detail how a loan is repaid.
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