Savings are expected to be 0 at the end of the first six months, to be $3,000 at the end of the second six months, and to increase by $3000 at the end of each six-month period thereafter, for a total of five years. It is desired to find the equivalent uniform amount at the end of each of the ten six-month periods if the nominal interest rate is 14% compounded semiannually. 6,102 11.838 $ 33.776 83,1485

Savings are expected to be 0 at the end of the first six months, to be $3,000 at the end of the second six months, and to increase by $3000 at the end of each six-month period thereafter, for a total of five years. It is desired to find the equivalent uniform amount at the end of each of the ten six-month periods if the nominal interest rate is 14% compounded semiannually. 6,102 11.838 $ 33.776 83,1485

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

An amount of $29,200 will provide 9 years of payments of $2,518.50 at the end of every 6 months. Find the corresponding interest rate as a percentage with 2 decimals, e.g., 9.87 a) What is the monthly compounded nominal rate? Mode N = P/Y = Rate = b) What is the effective rate?
The interest rates over the next 8 years will vary as follows: For the first 1.75 years, the annual effective rate of interest is 11%. For the subsequent year, the annual interest rate compounded quarterly is 16%. For the subsequent 5.25 years, the annual interest rate compounded monthly is 6%. A payment of 500 is to be received in 8 years. Calculate the present value of the payment. O a. 416.3510 O b. 260.0516 O c. 198.2752 O d. 222.2932 O e. 961.3476
if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest a) per year b) per semiannual c) per bi month d) per quarter c) per two years Use the editor to format your answer
Suppose that one has a bank loan for P15,584.48, which is to be repaid in equal end-of-month installments for 9 years with a nominal interest rate of 0.114 compounded monthly. What is the amount of each payment?
a demand loan of $3000 is repaid by payments of $1500 after two years, $1500 after four years, and a final payment after six years. interest is 7% compounded quarterly for the first two years, 8% compounded annually for the next two years, and 8% compounded quarterly thereafter. what is the size of the final payment?
A loan of 20,000 is to be repaid as follows. Payments of p are to be made at the end of each month for 96 months and a balloon payment of 5,400 is to be made at the end of the 96th month as well. If the nominal interest rate convertible monthly is 10%, what is the prinicipal componnent of the 19th payment?
Scheduled payments of $800 due two months ago and $1200 due in one month are to be repaid by a payment of $1000 today and the balance in three months. What is the amount of the final payment if the simple interest rate is 7.75% p.a and the focal date is one month from now?
What is the present equivalent of a uniform series of annual payments of $2,900 each for five years if the interest rate, compounded continuously, is 10%? Click the icon to view the interest and annuity table for continuous compounding when i= 10% per year. The present equivalent of a uniform series of annual payments is S (Round to the nearest dollar.)
4. We receive 50 beginning of each month for a term of n-years. We wish to replace it with an annuity paying at the end of each semiannual period for the same term. The exchange is based upon a nominal annual interest rate of 9% payable monthly. What is the semiannual payment?
the maturity value of a five-year, $4000 compound interest gic is $6275.42. to three-figure accuracy, calculate the nominal rate of interest paid on the gic if interest is compounded semi-annually?
The interest rates over the next four (4) years are as follows: The annual effective interest rate is 7% for the first 1.5 years. The interest rate is 8% convertible quarterly for the subsequent year. The interest rate is 6% payable monthly for the subsequent 1.5 years. A payment of 1000 euros is to be received in 4 years. How much is the present value of this payment.( 763 764 O 765 766 O 767
A bank promises to quadruple your investment over a period of 15 years based on semi-annual compounding. What is the stated annual interest rate on this investment?

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