You wish to put  your savings of £5000 into a bank account. Bank A has the following offer for savings: They first offer continuously compounded interest at the nominal rate of 8% for an introductory period of 2 years, after which interest is continuously compounded at the nominal rate 2%. Determine the yield curve r¯(t). Evaluate the yield curve at t=7 and determine the amount to which your savings will grow after 7 years.

Provide step by step manula solution, formula, and diagram.  An investor have a projected surplus income of P1000 per year which he plans to place in a bank which offers an interest of 18% per annum for time deposit over 5 years. Compute how much shall the investor collect at the end of 13 years

The formula below tells us how to obtain the maturity value on a simple discount loan if we are given the proceeds, the discount rate, and the term.   If a loan's annual simple discount rate is 7.56%, how many years would it take for the debt to double? (This is called the doubling time of a loan).  Round your answer to the nearest tenth of a year.  Hint: divide both sides of the equation by P. If M is twice as much as P, what should the fraction on the left-hand side equal?

Which do you prefer: a bank account that pays 10% per year (EAR) for 3 years or a. An account that pays 5.0% every 6 months for 3 years? b. An account that pays 15.0% every 18 months for 3 years? c. An account that pays 1.0% per month for 3 years? a. An account that pays 5.0% every 6 months for 3 years? If you deposit $1 into a bank account that pays 10% per year for 3 years, the amount you will receive after 3 years is $ If you deposit $1 into a bank account that pays 5.0% every 6 months for 3 years, the amount you will receive after 3 years is $ (Select from the drop-down menu.) (Round to five decimal places.) Therefore, you will prefer b. An account that pays 15.0% every 18 months for 3 years? If you deposit $1 into a bank account that pays 15.0% every 18 months for 3 years, the amount you will receive after 3 years is $ Therefore, you will prefer (Select from the drop-down menu.) c. An account that pays 1.0% per month for 3 years? If you deposit $1 into a bank account that pays…

You want to invest $18,000 and are looking for safe investment options. Your bank is offering you a certificate of deposit that pays a nominal rate of 6% that is compounded semiannually. What is the effective rate of return that you will earn from this investment?

A commercial bank is willing to make you a loan of P10,000. The bank wants a 12 percent interest rate and requires five equal annual payments to repay both interest and principal. What will be the dollar amount of the annual  payment?

If you could solve option 5 with the formulas please   Option 5: Half the required money is taken out of an investment account that pays monthly interest at a 3% annual rate.  The rest of the money is borrowed from a bank at a 4% annual interest rate, should payback within 3 years in equal monthly payments.  Find the future value of the money taken from the investment account at the end of the shop development and periodic payments to the bank.  Calculate Cumulative interest and principal payments.

You have the chance to buy a guaranteed promissory note for $850. The note pays $1,000 in 15 months (i.e., exactly 456 days). You have $850 in a bank account that pays a 7% nominal rate compounded daily. Which is a better investment, the note or the bank account? Answer this question using three approaches: (1) compare your future value if you buy the note versus leaving your money in the bank; (2) compare the PV of the note with your current bank balance; and (3) compare the effective rate or return on the note with that of the bank account.

1) What is the loanable funds market? 2) Calculate the following: You save $100 and want to see how much you will earn based on the following interest rates Interest Rate                   Value after 1 month -1%                                                 ? 0.5%                                                ? 1%                                                   ? 2%                                                   ?   3) What supply factors affect the Loanable Funds market?   4) What demand factors affect the Loanable Funds market?

Your bank is offering you a mortgage loan for $100,000.  It is a fixed rate loan at 4% per annum (APR).  It has a 30 year tenor and requires monthly payments.  What is your monthly payment?  Round to the nearest $ and use the $ symbol.