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- For an interest rate of 16 percent per year compounded semi-annually, determine the effective interest rate,(a) semi-annually, (b) annually, (c) quarterly, (d) monthlyUsing annual, semiannual, and quarterly compounding periods, (1) calculate the future value if $6,000 is deposited initially at 11% annual interest for 5 years, and (2) determine the effective annual rate (EAR).Find the effective rate of interest corresponding to a nominal rate of 7% per year compounded monthly.
- If the rate of interest is 12% compounded annually, find the equivalent rate of interest if it is compounded quarterly.Using annual, semiannual, and quarterly compounding periods, (1) calculate the future value if $5,000 is deposited initially at 11% annual interest for 9 years, and (2) determine the effective annual rate (EAR).Find the future value of the annuity due. Assume that interest is compounded annually, unless otherwise indicated. $200 deposited at the beginning of each quarter for 9 years at 4.4% compounded quarterly
- If interest is paid at a rate of 5% per year, compounded quarterly, what is the effective annual rate?Determine the annual rate of interest compounded daily that is equivalent to 9% per annum compounded monthlyIdentify the compounding period for the following interest statements: (a) nominal 7% per year, compounded monthly; (b) effective 6.8% per year, compounded monthly; and (c) effective 3.4% per quarter, compounded weekly.
- if the interest rate of a certain account ia 6.5%, compute the (a) single payment present worth factor; and (b) single payment compound amount factor at the end of 18 years.The annual amount $1,100 is invested in Certificate Deposit (CD) and will be worth of $16,000 in nine years. What is the semiannually compounded nominal (annual) interest rate for this CD?Determine the present value of an annuity of $600 paid monthly for a period of 15 years at 4.50% APR compounded monthly.