An amount of $105,650 was accumulated after 10 years of payments of $2,024.15 at thebeginning of every 3 months.Find the corresponding interest rate as a percentage with 2 decimals, e.g., 9.87a) What is the monthly compounded nominal rate?ModeN =P/Y =AA/A/Rate =b) What is the effective rate?A

An annuity is a series of payments provided in exchange for a lump sum payment. It is widely used in…

Answered: An amount of $105,650 was accumulated…

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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An amount of $124 is paid at the end of every month into an account. If the nominal interest rate is 3.02% compounded semiannually, how long (in years and months) will it take for the payments to accumulate to an amount of $6,455.41? Use the integer value of N to calculate years and months. |CN = |2 P/Y = 12 I/Y = 3.02 FV 6,455.41 PMT = $ -124 = years N= 192 to the nearest integer) PV = $14,892.17 X x (round = month(s)
An amount of P dollars is borrowed for the given length of time with the amount F due at the end of the given length of time. Find the annual simple interest rate r. (Round your answer to two decimal places.) P = $2400, F = 3744.00, 7 years %D r = 22.28 X %
An amount of $29,200 will provide 9 years of payments of $2,518.50 at the end of every 6 months. Find the corresponding interest rate as a percentage with 2 decimals, e.g., 9.87 a) What is the monthly compounded nominal rate? Mode N = P/Y = Rate = b) What is the effective rate?
What is the monthly interest rate if an annual rate is 13.4%? The monthly interest rate is %. (Type an integer or decimal rounded to two decimal places as needed.)
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Given an interest rate of 4.0% compounded monthly, determine the effective rate of interest. Answer as a percentage rounded to two decimal places. reff = Check %
Compute the present values of the following annuities first assuming that payments are made on the last day of the period and then assuming payments are made on the first day of the period: (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Present Value Present Value Interest Rate (Payment made on last day of period) (Payment made on first day of period) Payment Years (Annual) 748.09 8. 14 % 8,668.26 14 7 21,022.93 24 70,412.54 32
1.If the nominal rate of interest is 48% compounded bi-monthly, find the rate of interest per period? 2.If the rate of interest is 8% compounded quarterly, find the nominal rate of interest.
Compute the future values of the following annuities first assuming that payments are made on the last day of the period and then assuming payments are made on the first day of the period: (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Future Value (Payment Payment Years Interest Rate (Annual) made on last day of period) $ 243 15 12 % 5,755 10 11 75,684 7 13 168,532 11 4 Future Value (Payment made on first day of period)
Find the simple interest. Assume the rate is an annual rate. Assume 360 days in a year. Principal Rate Time in Months Interest 1 r= 5-% 2 p= $1700 t =9 ... The interest is $ (Round to the nearest cent.)
Find the effective rate of interest corresponding to a nominal rate of 2.3%/year compounded annually, semiannually, quarterly, and monthly. (Round your answers to two decimal places.) annually % semiannually % quarterly % monthly %
If you borrow $7,300 at $800 interest for one year, what is your effective interest rate for the following payment plans? Note: Input your answers as a percent rounded to 2 decimal places. a. Annual payment b. Semiannual payments c. Quarterly payments d. Monthly payments Effective Rate of Interest % % % %

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