A financial institution quotes a rate of 6.45 percent compounded monthly. What is the effective rate for the year?
Answer to relevant QuestionsIf you want an effective rate of 5 percent, what is an acceptable quoted rate if money is compounded monthly? Bylo Selhi wants to know how many years it well take for his mutual fund investment of $50,000 to reach $500,000 if his mutual fund pays an average of 12 percent per year. Mr. N invests $5,000 in a certificate of deposit in his local bank. He receives 2 percent compounded annually for 5 years. How much interest does his investment earn during this time period? The Blue Bonnet paid only $350 rent for 17 years between 1973 and 1990. Based on a 4 percent inflation rate, how much should their rent have been in by 1990? What advantage did this lease provide to the Mobel family? The city of Glendale borrows $48 million by issuing municipal bonds to help build the Arizona Cardinals football stadium. It plans to set up a sinking fund that will repay the loan at the end of 10 years. Assume a 4 percent ...
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