Q: Find the present value and the simple discount at 12% simple discount of GH¢1000 due in 5 months.
A: Answer
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Q: What
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Q: Find the present value and the true discount at 12% Simple Interest of GH¢1000 due in 5 months.
A: Present value = Amount * [1 / ( 1 + discount rate)n] where n = number of periods
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What rate compounded quarterly is equivalent to 10% simple discount rate for 2 years?
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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?What rate compounded quarterly is equivalent to (a) 10% effective, (b) 10% compounded monthly, (c) 10% simple interest for two years, and (d) 10% simple discount rate for 2 years?What rate compounded quarterly is equivalent to (c) 10% simple interest for two years, and (d) 10% simple discount rate for 2 years?
- Given an effective rate of discount of 11% per annum, what is the result for the corresponding nominal rate of discount compounded every 6 months?What is the present value of $20,000 to be received in 3 years at a 9% discount rate compounded continuously?if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest per bi month
- What is the effective annual rate (EAR) if your credit card charges you 10.45 percent compounded quarterly? Show your formula/calculation/explanation! Why is it different from annual percentage rate?what is the present value of a series of 20 annual payments of 10,000 starting one year from today, if the appropriate discount rate is 7%What is the present value of $2,100 to be received 14 years from now assuming a discount rate of 3.7% during the first 4 years, and a discount rate of 5.8% for the remainder of the period?
- What is the discounted value of $899.00 paid at the end of every month for 3 years if interest is 12 % per annum compounded semi -annually? The discounted value is $What is the present value of regular perpetuity paying $1500 per month if the discount rate is 8.4% APR compounded monthly?What is the present value of a 3-year annutiy of $220 if the discount rate is 6%.
