Find the simple interest. Assume the rate is an annual rate. Assume 360 days in a year. Principal Rate Time in Months Interest p= $1700 r= 5-% 2 t=9 ... The interest is $ . (Round to the nearest cent.)
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- Define the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future value be larger or smaller if we compound an initial amount more often than annually—for example, every 6 months, or semiannually—holding the stated interest rate constant? Why? What is the future value of $100 after 5 years under 12% annual compounding? Semiannual compounding? Quarterly compounding? Monthly compounding? Daily compounding? What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 12%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily?Suppose you invest $1,500 in an account paying 6% interest per year. How much of this balance corresponds to interest on interest earned in the last (7th) period? (Dollar figures should be approximated to the nearest cent of a dollar, while rates should be expressed in percentage terms without using the "%" symbol and approximated to the nearest second decimal place.)A bank quotes you an interest rate of 6.6% per annum with quarterly compounding. What is the equivalent rate with annual compounding? Enter your answer in percentage rounded to two decimals places (e.g, 15.45%)
- 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.Calculate the APR for a 10% per annum nominal rate of interest that is compounded (a) 2 times per year, (b)4 times per year, (c) continuously.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?
- if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest per bi monthIn a certain account providing an interest rate of r compounded quarterly, P2, 500 is deposited every end of the quarter. What value of r will make the future value of the account P5, 200 in six months?Suppose that an investment promises to pay a nominal 9.6 percent annual rate of interest. What is the effective annual interest rate on this investment assuming that interest is compounded (a) annually? (b) semiannually? (c) quarterly? (d) monthly? (e) daily (365 days)? (f ) continuously? (Note: Report your answers accurate to four decimal places –e.g., 0.0987 or 9.87%.)
- Assume a problem statement involves only single amounts, that is, no series or gradients, and the interest rate is stated as 12% per year compounded quarterly. For the following n values, determine the proper interest rate to use in the factor equations: (a) n = 20 quarters; (b) n = 10 semiannual periods; (c) n = 5 years.1.If the nominal rate of interest is 48% compounded bi-monthly, find the rate of interest per period? 2.If the rate of interest is 8% compounded quarterly, find the nominal rate of interest.Suppose $15,000 is invested in an account with an APR of 4.5%. If the interest is compounded annually, how much interest is earned over the first 6 years? If the interest is compounded monthly, how much interest is earned over the first 6 years?
