Question: 1. What rate, compounded quarterly, is equivalent to 18% compounded monthly? 2. What rate, daily compounded, is equivalent to 9% compounded continuously? 3. Find an

1. What rate, compounded quarterly, is equivalent to 18% compounded monthly?

2. What rate, daily compounded, is equivalent to 9% compounded continuously?

3. Find an effective rate that is equivalent to a monthly compounded rate of 12%?

4. How much money will you have, 8 years from today, if you receive $1750 at the beginning of each year for 8 years, if the interest rate is 10% compounded yearly?

5. What is the value today of $1,000 received at the end of each 4 months for 6 years and the interest rate is 8% compounded annually?

6. Consider a mortgage on a house valued at $900,000 with an interest rate of 6% compounded semi-annually, for a period of 20 years. Assume a 30% down-payment and monthly payments. Find the monthly payment. Calculate the balance of the mortgage after 15 years.

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