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What simple interest rate is equivalent to simple discount rate 15 ½ % in discounting an
amount for 9 months?
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- Calculate the annual force of interest which is equivalent to an effective rate of interest of 2.2% per 3 months. No tables, Only formulas, pleaseWhat is the present value of a series of payments that grow by 10% per year over 5 years. The starting value is $50,000 at the end of year 1. The interest rate (discount rate) is 6%, compounded annually.Melissa agrees to contribute $500 to the alumni fund at the end of each year for the next 4 years. Shannon wants to match Melissa's gift, but he wants to make a lump-sum contribution. If the current interest rate is 2.5% compounded annually, how much should Shannon cortribute to equal Melissa's gift? (Round your answer to the nearest cent.)
- In 1803, Napoleon sold the Louisiana Territory to the United States for $0.04 per acre. In 2017, the average value of an acre at this location is $10,000.What annual compounded percentage increase in value of an acre of land has been experienced?If XYZ Bank advertises a savings account with an interest rate of 8.5% p.a. compounded weekly, what is the effective interest rate for the account? (Note: Give your answer as a percentage to two decimal places)Lourdes has just retired and plans to consume $12829 from the retirement account every year for the next 14 years starting one year from today, meeting the rest of the expenses from other resources. If the annual interest rate is 9% compounded bimonthly, how much does Lourdes have in the retirement account today?
- Lourdes has just retired and plans to consume $14965 from the retirement account every year for the next 10 years starting one year from today, meeting the rest of the expenses from other resources. If the annual interest rate is 9.6% compounded semiannually, how much does Lourdes have in the retirement account today? Round off interest rate to six decimal places.How much would you pay for a 4%, 10-year bond with a par (and redemption) value of $10,000 that pays a dividend semiannually if you wanted to earn an 8% return.If the interest rate of a certain account is 6.5%, compute the (a) single payment present worth factor; and (b) single payment compound amount factor at the end of 18 years.
- Cash Flow is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. Part 2 The present value of a loan in which $1000 is to be paid out a year from today with the interest rate equal to 5% is $.(Round your response to the neareast two decimal place) Part 3 If a loan is paid after two years, and the amount $7000 is to be paid then with a corresponding 7%interest rate, the present value of the loan is $.(Round your response to the neareast two decimal place)Cash Flow is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. Part 2 The present value of a loan in which $1000 is to be paid out a year from today with the interest rate equal to 5% is $. (Round your response to the neareast two decimal place) Part 3 If a loan is paid after two years, and the amount $7000 is to be paid then with a corresponding 7% interest rate, the present value of the loan is $. (Round your response to the neareast two decimal place)Alfred desired 9,000 as the proceeds of a 90-day loan from B who charges 5% interest in advance. What sum will Alfred pay at the end of 90 days?