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Quiz #1
1.
The APR is 14% with semiannual compounding.
A) What is the effective six month rate? (2 points)
.14/ 2 =
7%
B) What is the effective annual rate? (3 points)
(1.07)^2 = 1 +RA
RA=
14.49%
C) What is the effective twomonth rate? (3 points)
(1 + r)^1/6 =1 +.1449
r=
2.28%
2.
Which of the following is most accurate? (2 points)
A. The Dow Jones Index is currently around 2000.
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Unformatted text preview: B. The S&P 500 is currently around 2000. C . The Nasdaq Composite is currently around 2000 . I acknowledge I have followed the closed book, closed note, closed neighbor policy. ______________________________ (sign name) Name (print)__Eric Schneck _____________________ Section ______2 __________________________...
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This note was uploaded on 03/17/2011 for the course BUS M 410 taught by Professor Brianboyer during the Fall '10 term at BYU.
 Fall '10
 BrianBoyer
 Compounding

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