Chapter 1 section1.10

Chapter 1 section1.10 - Chapter 1 Section 1.10 44 a b c d...

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Chapter 1, Section 1.10 44. An account pays a nominal interest rate of 6% compounded monthly. a. Calculate the monthly effective interest rate. b. Calculate the annual effective interest rate. c. Calculate the annual effective discount rate. d. Calculate the quarterly effective interest rate. 45. An account pays an annual effective interest rate of 12%. a. Calculate the monthly effective rate of interest. b. Calculate the i(12). c. Calculate d(2). 46. You are given d(4) = 0.12. Calculate: a. Calculate the quarterly effective discount rate. b. Calculate the annual effective interest rate. c. Calculate the nominal interest rate compounded monthly 47. Riley invests 50,000 in an account earning 8% compounded quarterly. How much will Riley have after 4 years. 48. Matt invests an amount of K in an account that earns interest at a rate of 5% compounded semi- annually. At the end of 10 years, Matt has 8000. Determine the amount of K that Matt invested.

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This note was uploaded on 02/04/2012 for the course MA 373 taught by Professor Staff during the Spring '08 term at Purdue.

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Chapter 1 section1.10 - Chapter 1 Section 1.10 44 a b c d...

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