1. Convert the following rates(a) 10% to compounded daily.(b) 20% simple interest to compoundedquarterly.(c) 16% compounded continuously tocompounded bi-annually(d) 30% compounded quarterly tocompounded semi-annually.2. How old is a 22 year old man will be abillionaire if he deposited P1000.00 today at40% compounded every three years?Ans: 49 years old3. At what compounding will 15% willbecomes 14.91% compounded monthly?

Compound Interest refers to the addition of interest to the principal sum of a deposit/loan, or in…

Answered: 1. Convert the following rates (a) 10%…

1. Convert the following rates (a) 10% to compounded daily. (b) 20% simple interest to compounded quarterly. (c) 16% compounded continuously to compounded bi-annually

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

1. Convert the following rates
(a) 10% to compounded daily.
(b) 20% simple interest to compounded
quarterly.
(c) 16% compounded continuously to
compounded bi-annually
(d) 30% compounded quarterly to
compounded semi-annually.
2. How old is a 22 year old man will be a
billionaire if he deposited P1000.00 today at
40% compounded every three years?
Ans: 49 years old
3. At what compounding will 15% will
becomes 14.91% compounded monthly?

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