Question: please show in excel built formulas such as =rate(B6,C7,,), show function like this one plz. P5-37 C ompounding frequency, time value, and effective annual rates
please show in excel built formulas such as =rate(B6,C7,,), show function like this one plz.
P5-37 C ompounding frequency, time value, and effective annual rates For each of the cases in the following table: a. Calculate the future value at the end of the specified deposit period. b. Determine the effective annual rate, EAR. c. Compare the nominal annual rate, r, to the effective annual rate, EAR. What re- lationship exists between compounding frequency and the nominal and effective annual rates? Compounding Deposit Amount of Nominal frequency, m period Case initial deposit annual rate, r (times/year) (years) $2,500 6% 50,000 12 10 1,000 16 20,000
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