The final payment will be $______ (Round to the nearest cent.) Your bank is offering you an account that will pay 20% interest in total for a two-year deposit. Determine the equivalent discount rate for the following: a. Six months b. One year c. One month (Note: Be careful not to round any intermediate steps less than six decimal places.) a. Six months The equivalent discount rate for a period length of six months is _____%. (Round to two decimal places.) Part 2 b. One year The equivalent discount rate for a period length of one year is _____%. (Round to two decimal places.) Part 3 c. One month The equivalent discount rate for a period length of one month is ______%. (Round to three decimal places.)
The final payment will be $______ (Round to the nearest cent.) Your bank is offering you an account that will pay 20% interest in total for a two-year deposit. Determine the equivalent discount rate for the following: a. Six months b. One year c. One month (Note: Be careful not to round any intermediate steps less than six decimal places.) a. Six months The equivalent discount rate for a period length of six months is _____%. (Round to two decimal places.) Part 2 b. One year The equivalent discount rate for a period length of one year is _____%. (Round to two decimal places.) Part 3 c. One month The equivalent discount rate for a period length of one month is ______%. (Round to three decimal places.)
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA3: Time Value Of Money
Section: Chapter Questions
Problem 21E
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The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
Question
The final payment will be $______ (Round to the nearest cent.)
Your bank is offering you an account that will pay 20% interest in total for a two-year deposit. Determine the equivalent discount rate for the following:
a. Six months
b. One year
c. One month
(Note: Be careful not to round any intermediate steps less than six decimal places.)
a. Six months
The equivalent discount rate for a period length of six months is _____%. (Round to two decimal places.)
Part 2
b. One year
The equivalent discount rate for a period length of one year is _____%. (Round to two decimal places.)
Part 3
c. One month
The equivalent discount rate for a period length of one month is ______%. (Round to three decimal places.)
Transcribed Image Text:Your bank is offering you an account that will pay 20% interest in total for a two-year deposit. Determine the equivalent discount rate for the following:
a. Six months
b. One year
c. One month
(Note: Be careful not to round any intermediate steps less than six decimal places.)
As
Li
a. Six months
The equivalent discount rate for a period length of six months is %. (Round to two decimal places.)
b. One year
The equivalent discount rate for a period length of one year is %. (Round to two decimal places.)
c. One month
2
The equivalent discount rate for a period length of one month is %. (Round to three decimal places.)
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