I f Topic 2: Linear Equations AT 9. A passbook savings account has a rate of 6%, Find the effective annual yie if the interest is compounded daily. Assume 360 days in a year. (Round to the nearest tenth of a percent, if necessary. For example, 20.5%) n 0.06 360 =C1+9 - C 1 36C -(t0.0a1 666) 360-1 . oo01 6666 360-1 3-1 360 1 1, o0ul 10
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- Solve the problem. Round to the nearest tenth of a percent. A=P1+rnnt P=A1+rnnt A=Pert Y=1+rnn−1 A passbook savings account has a rate of 5%. Find the effective annual yield if the interest is compounded daily. Assume 360 days in a yearSuppose you deposited $1,000 in a credit union account that pays 7% with dailycompounding and a 365-day year. What is the EFF%, and how much could youwithdraw after 7 months, assuming this is seven-twelfths of a year? [EFF% = (1 +0.07/365)365 - 1 = 0.07250098 = 7.250098%. Thus, your account would growfrom $1,000 to $1,000 (1.07250098)0.583333 = $1,041.67, and you could withdraw that amount.]*Using Matlab* The current amount A of a principal P invested in a savings account paying an annual interest rate r is given by A = P(1+r/n)^(nt) where n is the number of times per year the interest is compounded. For continuous compounding, A = Pe^(rt). Suppose $10,000 is initially invested at 2.5 percent (r = 0.025). a. Plot A versus t for 0 ≤ t ≤ 20 years for four cases: continuous compounding, annual compounding (n = 1), quarterly compounding (n = 4), and monthly compounding (n = 12). Show all four cases on the same subplot and label each curve. On a second subplot, plot the difference between the amount obtained from continuous compounding and the other three cases. b. Redo part a, but plot A versus t on log-log and semilog plots. Which plot gives a straight line?
- h.Money borrowed today is to be paid in 6 equal paymentsat the end of 6 quarters. If the interest is 12% compoundedquarterly, how much was initially borrowed if quarterlypayment is P2,000.00? include a non-excel cashflowYou invest $10,000 in a savings account that pays interest of 8% compounded monthly To the nearest cent, what is the value of your account after 14 months? A $10,004 88 B. $10,004.88 C. $10,904 88 D. $10,970 88 OE $10,974 88 GDYour company are offered a bank loan with an annual percentage ate (APR) of 5 percent with quarterly compounding. What is the effective annual rate (EAR) on this loan? (Answers are rounded to two decimals) a) 5.00 % b) 21.55 % c) 5.09 % d) 1.25 % e) 105.09 %
- Consider a borrowing of $400,000, with monthly payments to be made over 15 years with a 15% add-on interest. What is the APR? Note: Show your answer in units of percents, use plain numbers with at least two digits after the decimal (e.g., for 12.34%, type 12.34).You deposit $175,000 in a savings account. The APR (Annual Percentage Rate) is 6%. Calculate the following: B) Assuming that the interest is compounded every month, what is the amount accumulated after ten years? For this one I am not sure what equation to use, I have gotten two separate answers: EAR- (1+.06/12)^12-1= 6.168% ---- 175000*(1.06168)^10= $318,400.99 EAR- (1+.06/12)^12*10-1= 81.94% or 1.8194 --- 175,000(1.8194)= 318,395 Which one is right? C) Assuming that the interest is compounded every day, what is the amount accumulated after ten years? EAR- (1+.06/365)^365-1= 6.183% ----- 175000*(1.06183)^10= $318,851.13 Am I doing this correctly or should I use: EAR- (1+.06/365)^365*10-1= ?Suppose you are borrowing $25,000 and makingmonthly payments with 1% interest. Show that themonthly payments should equal $556.11. The keyrelationships are that for any month t(Ending month t balance)= (Ending month t - 1 balance)- ((Monthly payment) - (Month t interest))(Month t interest) = (Beginning month t balance)x (Monthly interest rate)Of course, the ending month 60 balance must equal 0.
- step by step instructions no excel What is the present value of $5000 to be received in 4 years, if the interest rate is 8% p.a., compounding monthly? a. $3544 b. $3635 c. $3400 d. $3675Assume the average management cost per account per year is $200 and the average fees earned per account per year is $170. The average annual size of account is $1800. What is the average implicit interest rate (round to two decimals)? Select one: a. 4.86% b. 1.67% c. 15% d. -1.67%Please show in Excel Suppose that you deposit $200 at the end of each month into an account paying an expected annual rate of return of 3%, compounded monthly. How much money will you have in the account in 10 years? AnswerN I PV PMT FV