Unformatted text preview: END is highlighted at the bottom of the screen. This represents that payments are received at the end of each period. • The Eﬀective Rate of Interest gives the equivalent interest rate if compounding was only done once a year. Use option C:Eﬀ( on the ﬁnance menu. Enter as Eﬀ( interest rate as a percentage , number of compounding periods per year ) 6. How much would you have to deposit in an account earning an annual 4 . 5% simple interest rate if you wanted to have $1000 after 6 years? 7. At what simple interest rate will an investment triple in 20 years? 8. How much would you have in 8 years if you invest $1,500 into an account earning 5 . 4% per year compounded quarterly?...
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- Fall '08
- $1000, 6 years, $1,500, 4.5%, 5.4%