Consider an investment cost $5000 today which pays fixed amount of $250 at the beginning of every month for 10 years and the annual percentage rate is 6.3% p.a. compounded quarterly. Explain how the conversion rate works which can be used to calculate either the present value or future value of this investment. Show the conversion formula only using the appropriate inputs in the formula?

Answer rating: 100% (QA)

627 annual percentage rate when compounded monthly This conversion is necess... View the full answer