The price of a Universal Testing Machine doubles in 15 years. What is the compounded yearly interest rate? What do you think is the equivalent compounded monthly rate?
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- How long will an amount of money double at a simple interest rate for 10% per annum?How many years will it take for an investment to double itself if the interest rate is 10%?Define the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future value be larger or smaller if we compound an initial amount more often than annually—for example, every 6 months, or semiannually—holding the stated interest rate constant? Why? What is the future value of $100 after 5 years under 12% annual compounding? Semiannual compounding? Quarterly compounding? Monthly compounding? Daily compounding? What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 12%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily?
- 4) Suppose you will receive OMR 1 each year for the 3 coming year the Interest Rate is 10% Question: a. What is the Future Value of those payments?11. What is the present value of a loan that calls for the payment of OMR500 per year for six years if the discount rate is 10 percent and the first payment will be made one year from now? How would your answer change if the OMR500 per year occurred for ten years?Answer the following Compound Interest problem using the provided formula ONLY. Show your complete solution. 9. Compound Interest What payment X ten years from now is equivalent to a payment of P 1,000 six years from now, if interest is 15% compounded monthly?
- How many years will it take an investment to quadruple if the interest rate is9% compounded annually?2. Find the future value of OMR10,000 invested now after five years if the annual interest rate is 8 percent. a. What would be the future value if the interest rate is a simple interest rate? b. What would be the future value if the interest rate is a compound interest rate?How many months does it take for a present sum of money to double if the nominal interest rate is 12% per year and compounding is monthly?
- What is the value of an investment today, if it pays P250 interest forever and the appropriate interest rate is 5%?What is the approximate net present value of a machine that will save you $13,310 in each of the next three years if the real interest rate stays at i= 10% during that period?How many years will it take for P200,000 to double at a simple interest rate of 16%?
