Find the following:a. interest rate per conversion periodb. future amountc. compound interestd. conversion period per yeare. total number of conversion period TotalPrincipal,(P)Time inCompoundinterest,NominalInterestConversionInterestFuturerate, (r) compoundedperiod perrate peryears,number ofamount,year, (m)conversion(t)conversion(Ic)(F)period, (i)period, (n)50,0002%quarterly

Interest rate per conversion period: = Nominal Rate/ 4 = 2%/4 = 0.5%

Answered: interest rate per conversion period b.…

interest rate per conversion period b. future amount c. compound interest d. conversion period per year e. total number of conversion period

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Find the following: a. interest rate per conversion period b. future amount c. compound interest d. conversion period per year e. total number of conversion period

Total
Principal,
(P)
Time in
Compound
interest,
Nominal
Interest
Conversion
Interest
Future
rate, (r) compounded
period per
rate per
years,
number of
amount,
year, (m)
conversion
(t)
conversion
(Ic)
(F)
period, (i)
period, (n)
50,000
2%
quarterly

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Step 1 a) Interest rate per conversion period:

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Step 2 d) Conversion period per year:

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Step 3 e) Total number of conversion period:

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Step 4 b) Future amount:

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Step 5 Compound interest:

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