Question: [1] Assuming a $4,000 initial deposit, find the effective interest rate per quarter at a nominal rate of 8%, compounded continuously. Also find the balance

[1] Assuming a $4,000 initial deposit, find the effective interest rate

[1] Assuming a $4,000 initial deposit, find the effective interest rate per quarter at a nominal rate of 8%, compounded continuously. Also find the balance at the end of 3 years under such a compounding rate. (20%)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

How can i get the final balance(last part) Problem 2: Assuming a $12,000 initial deposit: Find the effective interest rate per quarter, at a nominal rate of 10%, and (c) continuously. (20 points)...

a.Suppose you make equal quarterly deposit of $2,500 into a fund that pays interest at a rate of 8% per year compounded monthly. Find the balance at the end of year 2. b.What is the effective...

1.5 $1000 is placed in an account at 4% compounded annually for 2 years. It is then withdrawn at the end of the two years and placed in another bank at the rate of 5% compounded half yearly for 4...

5. Consider the following statement: The real estate market is considered efficient because all information affecting market price is available at the same cost to all investors. (1) This statement...

please answer 1,2,&3 this is an Theory of Interest question 1. Suppose deposits of $1000 are paid into a savings account at the end of each quarter for ten years. The savings account earns interest...

Ragneb invested money in an account for 9 months at 9 . 5 % interest. If he recelved RM 3 9 5 . 5 0 interest on his investment during this time, find the amount that he invested. ( 3 Marks ) Raatib...

SECTION A (20 Marks) There are NINE (9) questions in this section. Answer all questions. 1. Wan Zulaikha Arts Clinic purchased equipment list priced at RM5,482.95 less series discounts of 3/8/10,...

1. Vincent Van Gogh sold only one painting during his lifetime, for about $30. A sunflower still life he painted in 1888 sold for $39.85 million in 1988, more than three times the highest price paid...

During 2015, Johnson Corporation had EBIT of $100,000, a change in net fixed assets of $400.000, an incrcase in net current assets of $100,000, an increase in spontancous current liabilities of...

Find an effective rate that corresponding to a nominal rate of 8% compounded quarterly. Find an effective rate that corresponds to a nominal rate of 12% compounded semiannually. If exist1000 grows to...

A 4-year project will generate the following FCF's for the next four years. The debt amounts associated with the project for years 0-4 are also shown below. Cost of debt = 4%; Cost of equity = 12%; T...

On January 2, 2018, AAA Corporation acquired 75% of BBB Company's outstanding common stock. In exchange for BBB's stock, AAA issued bonds payable with a par value of $500,000 and fair value of...

EXERCISE 1-7. Financial vs. Managerial Accounting Consider a large manufacturing company like Boeing that rewards its sales force with bonuses based on sales. For this purpose, should the company...

An experienced project manager has just begun working for a large information technology integrator. Her manager provides her with a draft project charter and immediately asks her to provide an...

What problems develop when the head of HR reports to any executive other than the chief executive officer?

What is the fundamental difference between a line activity and a staff activity? Provide two examples of each in a health care setting.

Why do experts contend that a primary characteristic of line personnel is present within a clearly defined staff activity such as HR or Finance?