Question: The equivalent compounding discount rate to the 5% compounding interest rate if the time of the investment is 3 years, the frequency of compounding in

The equivalent compounding discount rate to the 5% compounding interest rate if the time of the investment is 3 years, the frequency of compounding in semi-annual and the amount of the investment is 2000 use is:

a. 5.13%

b. 4.35%

c. 6%

d. 4.88%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Calculate how much should the investment project in the amount of 200 000 EUR bring monthly to infinity at the begining of the month, if its net present value is equal to O? Use the interest rate of...

The equivalent compounding discount rate to the 6% compounding interest rate if the time of the investment is 3 years, the frequency of compounding in semi-annual and the amount of the investment is...

18. The equivalent simple discount rate to the 6.5% simple interest rate if the time of the investment is 3 years and the amount of the investment is 1000 PLN is: a) 5.44% b) 6.36% c) 5% d) 8.07% 18....

1.Which of the following statements are true? i.7% compounded half-yearly is equivalent to 6.9398% compounded quarterly. ii.9% compounded quarterly is equivalent to 9.1012% compounded half-yearly....

The work below is not the work of a tutor. I am submitting these problems for the first time. The work is my own. It is just me, the problems, and my text book. The work that I have completed is in...

I would like to know if someone can assist with inputting the formulas into the Excel spreadsheets..... Answers are provided, however, the formulas were omitted. Week 9 Chapter 21: Problems 3(a-e),...

Looking for assistance in Finance HW..... I ONLY Need the FORMULASin the function ribbon (for the answers that I already have, which are attached below) Please advise if you can assist and provide...

Kindly help solve problems 4-8 and 5-7 and please see attached documents below for the questions and problems templates PROBLEM 4-1 Given As a summer intern you are asked to prepare a spreadsheet...

answers are given. please show calculation with calculator or formulas below. 3) 3) A Xerox DocuColor photocopier costing S44.000 is paid off in 60 monthly installments at 6.90% APR. Ater three years...

Describe the virtual network structure. What are the advantages and disadvantages of using this structure compared to performing all activities in-house within an organization?

Which of these elements are unlikely to form covalent bonds: S, H, K, Ar, Si? Explain your choices.

BE8.5 (LO 2) Refer to the data in BE8.4 for Keysers Fleece. Prepare the journal entries for (a) the wool harvested in the first 6 months of 2025, and (b) when the wool harvested is sold for 10,500 in...

Which of the following statements with regard to the appointment and role of auditors are correct? i. The auditor may not have any direct or indirect interest in the business that is being audited....

Appreciate why organizational managers prefer to remain union-free

Identify different bargaining units that are possible in a unionized health care facility

Recognize the importance of grooming a successor to take over as the next CEO