show all excel formulas/ work answering the following: Computing EAR and APR 1 Suppose you can earn 1% per month on $1 invested today. What is the APR? How much are you effectively earning? Suppose if you put it in another account, you earn 3% per quarter. What is the APR? How much are you effectively earning? Future Values with Monthly Compounding Suppose you deposit $50 a month into an account that has an APR of 9%, based on monthly compounding. How much will you have in the account in 35 years? Present Value with Daily Compounding You need $15,000 in 3 years for a new car. If you can deposit money into an account that pays an APR of 5.5% based on daily compounding, how much would you need to deposit?
show all excel formulas/ work answering the following: Computing EAR and APR 1 Suppose you can earn 1% per month on $1 invested today. What is the APR? How much are you effectively earning? Suppose if you put it in another account, you earn 3% per quarter. What is the APR? How much are you effectively earning? Future Values with Monthly Compounding Suppose you deposit $50 a month into an account that has an APR of 9%, based on monthly compounding. How much will you have in the account in 35 years? Present Value with Daily Compounding You need $15,000 in 3 years for a new car. If you can deposit money into an account that pays an APR of 5.5% based on daily compounding, how much would you need to deposit?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter22: Providing And Obtaining Credit
Section: Chapter Questions
Problem 4MC
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show all excel formulas/ work answering the following:
Computing EAR and APR 1
Suppose you can earn 1% per month on $1 invested today.
- What is the APR?
- How much are you effectively earning?
Suppose if you put it in another account, you earn 3% per quarter.
- What is the APR?
- How much are you effectively earning?
Monthly Compounding
Suppose you deposit $50 a month into an account that has an APR of 9%, based on monthly compounding. How much will you have in the account in 35 years?
Present Value with Daily Compounding
You need $15,000 in 3 years for a new car.
If you can deposit money into an account that pays an APR of 5.5% based on daily compounding, how much would you need to deposit?
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