What is the effective rate of 16% compounded daily, monthly, quarterly, semi-annually, annually?
Answer to relevant QuestionsIf the effective rate is 12% and compounding is quarterly, compute the nominal rate? Tuition is #1,769 will be due when the spring term begins in 4 months. What amount should a student deposit today, at 3.25% to have enough to pay the tuition?Find the effective rate corresponding to the following nominal rates. 30. 6% compounded quarterly.You are preparing to make monthly payments of $72, beginning at the end of this month, into an account that pays 6 percent interest compounded monthly. How many payments will you have made when your account balance reaches ...Eight years from now you will begin to receive cash flows of $5,000 per year. These cash flows will continue for twenty years. If the discount rate is 8%, what is the present value (today) of these cash flows?
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