Answer the circled question please occur at the end of 20, 40, and 60 years.1.7 The effective rate of discount20. a) Find ds if the rate of simple interest is 10%.b) Find ds if the rate of simple discount is 10%.21. Find the effective rate of discount at which a payment of $200 immediately and $300one year from today will accumulate to $600 two years from today.22 The amount of interest carned on A for one year is $336, while the cquivalent amountof discount is $300. Find A.23. Find the present value of $5000 to be paid at the end of 25 months at a rate of discountof 8% convertible quarterly:a) Assuming compound discount throughout.b) Assuming simple discount during the final fractional period.24. Show that(i-d)°1-v25. If i andd are equivalent rates of simple interest and simple discount over 4 periods,show thati-d = idt.1.8 Nominal rates of interest and discount

Interest earned = $336Equivalent amount of discount = $300 Equation 1:A * (1 + i) = A + $336…

Answered: The amount of interest carmed on A for…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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The amount of interest carmed on A for one year is $336, while the equivalent amount of discount is $300. Find A.