1. Suppose you invest $4,600 today in an account that earns a nominal annual rate (i nom) of 12 percent, with interest compounded monthly. How much money will you have after 12 years?

 2.You want to buy a house, and a mortgage company will lend you $260,000. The loan would be fully amortized over 30 years (360 months), and the nominal interest rate would be fixed at 9 percent, compounded monthly. What would be the monthly mortgage payment?  

Answer rating: 100% (QA)

1 To calculate the future value of the investment after 12 years we can use the formula for compound ... View the full answer