Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Related questions
Question
Determine the amount due on the
$11,000 at 4% for 10 years if the interest is compounded in the following ways.
(a) annually
$
(b) quarterly
$
(b) quarterly
Expert Solution
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Step 1 Analysis
We need to use compound interest formula to calculate the amount due
A=P(1+i)n
Where
A= amount
P=Principal
i= periodic interest rate
n=number of compounding
Step by stepSolved in 3 steps
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