This preview shows page 1. Sign up to view the full content.
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 Eective Rate of Interest gives the equivalent interest rate if compounding was only done once a year. Use option C:E( on the nance menu. Enter as E( 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?...
View Full
Document
 Fall '08
 JillZarestky

Click to edit the document details