For the investment situation below, identify the annual interest rate, the length of the investment in years, the periodic interest rate, and the number of periods of the investment.  8% compounded bi-monthly for 10 years  What is the annual interest rate?

Q: Approximately what interest rate is needed to double an investment over eight years?

A: In the given question we require to compute the interest rate which will make our investment double…

Q: An investment will return $125 at the end of each month for 5 years and then $250 at the end of each…

A: Value at the end of 5 years of $250 received for next 3 years every month, can be calculated as…

Q: Annual investments of $1200 are to be made at a savings and loan institution for 10 years beginning…

A: Annual Savings = 1200 End of year savings Nominal Rate = 5% Quarterly Compounding N = 10 years…

Q: What is the accumulated value of the 5000 TL investment at the end of each year with 3% interest…

A: The accumulated value is calculated as future value of annuity

Q: If interest is compounded monthly at 10% per year for 15 years, explain how to find the number of…

A: To find the number of compounding periods and the interest earned when interest is compounded…

Q: What is the future value of an annuity of $2,000 invested at the end of each of the next six periods…

A:

Q: For an investment that earns 11.0% compounded monthly for two years, how many compounding periods…

A: The period during which interest on an investment or loan is computed and added to the principal…

Q: 4. If P3,200 is invested for 1 year at 9% compounded monthly, what is the compound interest on the…

A: In this question, we are required to compute the compound interest.   Compound interest: Compound…

Q: Suppose that a company borrows 20,000 for 1 year at a stated rate of interest of 9 percent. What is…

A: Annual percentage rate (APR) if interest is paid to the lender annually = (1 + Stated rate / Number…

Q: In each situation described below, identify the initial payment, the term interest rate, and the…

A: The APR is the total amount of interest that is charged for the entire year. It provides a better…

Q: P2000 is invested in a high interest account for one and half (1 1/2) years . the interest rate is…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: How much compound interest is earned on a 6.5-year investment that has a rate of return of…

A: Future value (FV) = $ 9600 Period = 6.5 Years Period in quarters (n) = 6.5*4 = 26 Interest rate = 6%…

Q: What is the effective annual interest rate when 12% per year is compounded quarterly? 0.13 or 0.23?

A: In this we have to calculate the effective interest rate annually.

Q: Assume the annual interest rate is 6%. Calculate the value of an investment that pays $100 every two…

A: Present value of perpetuity is = cash flow/rate

Q: At what nominal interest rate will money double in 8 years if interest is compounded quarterly? What…

A: Solution Given Rate of interest                compounded quarterly                 =? Number of…

Q: Rate of return-Annuity What is the rate of return on an investment of $11,733 if the investor will…

A: The rate of return on an investment is the discount rate at which the present value of the future…

Q: What is present value of annuity A

A: First payment = $1000Period = 20 yearsIncrement = 3%Interest rate = 5%

Q: earns an annual interest rate of 12 percent compounded Semi annually. What is the effective annual…

A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…

Q: An investment pays simple interest, and triples in 14 years. What is the interest rate?

A: The sum of money that is charged or gained for the usage of money is known as interest, and it is…

Q: An investment promises two payments of 650 on dates two and four months from today if the required…

A: The present value is the current value of future cash flows. Investors and money lenders use this…

Q: ind the future values and the int arned for the following annuities very 2 months for 1 year, 8 mont…

A: Future values of annuities include the amount deposited and the interest being accumulated over the…

Q: If $17,500 is invested at an interest rate of 10% per year, find the value of the investment at the…

A: Present Value (PV)= $17,500 Interest Rate (r)= 10% per year Time period (n)= 5 years Future Value at…

Q: est is paid at a rate of 5% per year, compounded quarterly, what is the effective annual rate?

A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…

Q: n amount of $5000 was invested with an annual interest rate of 5.5% compounded monthly. Answer the…

A: Future value of amount is computed as follows:-FV = A * (1+r)nwhereFV = future value A = amount…

Q: Suppose that $2700 is invested in an account with an APR of 3.9% compounded continuously. Determine…

A: Future value = Present value*e^rate*time

Q: What is the future value of an annuity of $2,000 invested at the beginning of each of the next six…

A: Future value: This is the amount of present value accumulated or compounded at a rate of interest…

Q: Approximately what interest rate is needed to double an investment over six years?

A: In this question we require to compute the interest rate at which our investment will get double in…

Q: Ten annual payments at an interest rate of 7% are made to repay a loan of $9000. Build the table…

A: Yearly Payments implies, regarding any Material Contract, the aggregate sum of the installments…

Q: How much will $200,000 deposited in an investment account earning an annual interest rate of 8½% be…

A: Given information: Present value $200,000 Annual interest rate is 8.5% Number of years is 1

Q: The interest rate for an investment is 7% pa compounded monthly. Find the effective interest rate…

A: The effective annual rate (EAR) is the actual rate of return earned after taking the compounding…

Q: Use the formula for computing future value using compound interest to determine the value of an…

A: The future value of the account can be computed by using the future value of a single deposit…

Q: If 2400 dollars is invested in an account for 10 years. Find the value of the investment at the end…

A: Future value(FV) is the value of initial investments at a future date after compounding it with a…

Q: If money is invested at 6% per year, after approximately how many years will the interest earned be…

A: The time value of money is the concept that money available today is worth more than the same amount…

Q: From the interest statement 18% per year, compounded monthly, determine the values for interest…

A: Interest Rate period: It is the period (in years) in which interest is charged. Compounding…