P500,000 was deposited for a period of 5 yrs. And 6 months and bears on interest of P85,659.25. What is the nominal rate of interest if it is compounded quarterly? What is the actual rate of interest? What is the equivalent nominal rate if it is compounded semi-quarterly?
P500,000 was deposited for a period of 5 yrs. And 6 months and bears on interest of P85,659.25. What is the nominal rate of interest if it is compounded quarterly? What is the actual rate of interest? What is the equivalent nominal rate if it is compounded semi-quarterly?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 31P
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P500,000 was deposited for a period of 5 yrs. And 6 months and bears on interest of P85,659.25.
- What is the nominal rate of interest if it is compounded quarterly?
- What is the actual rate of interest?
- What is the equivalent nominal rate if it is compounded semi-quarterly?
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