Please all answer Assume you make monthly deposits of $3,000 now into an account that pays 12% per year,compounded monthly. If you want to know the total amount after 2 years, the value of interestrate (i) you should use in the F/P factor is:Select one:a. 1%b. 3%C. 12%d. 24%E O O OO In the situation where Ahmad are depositing $1,000 per month in a savings account that pays 6percent interest per year compounded quarterly. Here payment period is greater thancompounding period.Select one:TrueO False

Since you have asked multiple questions, we will solve the first question for you. Please ask the…

Assume you make monthly deposits of $3,000 now into an account that pays 12% per year, compounded monthly. If you want to know the total amount after 2 years, the value of interest rate (i) you should use in the F/P factor is: Select one: a. 1% O b. 3% С. 12% d. 24%

Assume you make monthly deposits of $3,000 now into an account that pays 12% per year, compounded monthly. If you want to know the total amount after 2 years, the value of interest rate (i) you should use in the F/P factor is: Select one: a. 1% O b. 3% С. 12% d. 24%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 31P

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Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

Please all answer

Assume you make monthly deposits of $3,000 now into an account that pays 12% per year,
compounded monthly. If you want to know the total amount after 2 years, the value of interest
rate (i) you should use in the F/P factor is:
Select one:
a. 1%
b. 3%
C. 12%
d. 24%
E O O OO

In the situation where Ahmad are depositing $1,000 per month in a savings account that pays 6
percent interest per year compounded quarterly. Here payment period is greater than
compounding period.
Select one:
True
O False

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