Question: 1. Cite a significant factor that differentiates Compound Interest from Simple Interest 2. Fill in the compound interest terms in the table below Interest Compounded

1. Cite a significant factor that differentiates Compound Interest from Simple Interest 2. Fill in the compound interest terms in the table below Interest Compounded Number of Compounding Periods in 1 Year Annually or once a year ? ? 2 Quarterly or every 3 months ? ? 12 ? 365/366 Leap year 3. Define the 6 variables(i, j, m, n, t and u) in the following Compound Interest formulas: i=j / m; n=txm; u = (1+ j/m)" - 1 4. How much must be invested today, in order to have $50,800.00 in 6 years and 9 months if money earns 8 12 % compounded quarterly? 5. What is the most significant relationship between the Effective Rate and the Nominal Rate? 6. What is the effective rate that is equivalent to 9% compounded semi annually

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