Determine the equivalent effective rate of a money compounded continuously at r=5%.

If a money market account has a nominal rate of 8.4 percent compounded quar- terly, what is its effective rate? A B C D = 8.7629 percent eff=8.4697 percent " = 8.6683 percent = 8.6421 percent

There is a relationship between mortgage amount, number of payments, amount of each payment, how often each payment is made, and the interest rate. The following formula illustrates the relationship: PV= R[1-(1+i)"] i • PV = present value ⚫ i = interest rate per compounding period, as a decimal R = payment amount • n = number of payments Suppose a bank offers you a 3.4% interest rate, compounded semi-annually, on a mortgage amount of $173 112. You pay $1000/mo, or $6000 semi-annually. How long, in years, would it take to pay off the mortgage? a. 80 years b. 60 years c. 20 years od. 40 years e. 10 years A X

Find the interest rate needed for an investment of $3,000 to grow to an amount of $4,000 in 4 yr if interest is compounded continuously. Please round the answer to the nearest hundredth of percent.