Assume that time is measured in months. Calculate the present value at time 0 of a payment of £131 paid at time 18, using an interest rate of 9% per annum effective.
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Assume that time is measured in months. Calculate the present value at time 0 of a payment of £131 paid at time 18, using an interest rate of 9% per annum effective.
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- Assume that time is measured in years. Calculate the total present value at time 0 of a payment of £257 paid at time 4 and a payment of £67 paid at time 12, using an interest rate of 5% per annum effective.If R197 is invested at 11% per annum (pa) compounded quarterly and after 3 months the interest rate changes to 9% per annum compounded monthly, what would the value of the investment be after 3 years?If $14,000 is borrowed for 2 months and $82 is paid, then the annual simple interest rate is ____
- Find the simple interest on RM68,000 at 16 2/3% per annum for a period of 9 months?1000 dollars is deposited into an account at the beginning of the year and the value at the end of five years is 1276.30. (a) If the account was subject to a force of interest δ(t) = kt where t is in years, k =? (b) If inflation is 1 percent a year, what is the adjusted effective yearly interest rate?Using an effective rate of interest of 8% per annum, calculate the CONVEXITY of the following series of payments: £300 payable after 4 years, £200 payable after 12 years, and £250 payable after 17 years.
- What is the present value of 5,275 due in 6 months if 11% interest is paidWhat is the interest earned on the principle of RM18,000 at the rate of 12% for 1 year and 4 months compounded monthly?Assume that at time 0 a sum L is lent for a series of n yearly payments. The rth payment, of amount xr, is due at the end of the rth year. Let the effective annual interest rate for the rth year be ir. Give an identity which expresses L in terms of the xr and ir.
- For an interest rate of 1% per quarter, determine the nominal interest rate per (a) semiannual period, (b) year, and, (c) 2 years.What is the equivalent present value of the following series of payments: $10,000 the first year, $11,000 the second year, and $12,000 the third year? Consider 4% interest, compounded annually.what amount of interest will be charged if 7000 is borrowed for 9 months at a simple rate of interests of 9.5% per annum
