Question: 1.What rate, daily compounded, is equivalent to 9% compounded continuously? 2. Find an effective rate that is equivalent to a monthly compounded rate of 12%?

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

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

3. 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?

4. 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?

5. 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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