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Unformatted text preview: 4 572.0 4. Using an interest rate of 7% compounded semiannually, calculate the accumulated value of $200 after 15 months. 200 1 .07 2 2 15 12 217.96 or i 12 12 1 .07 2 2/12 − 1 .0057500395 200 1.0057500395 15 217.96 5. What rate of interest compounded monthly is equivalent to 6.4% compounded quarterly. i 12 12 1 i 4 4 4/12 − 1 12 1 .064 4 4/12 − 1 6.37% 6. Deb needs $1500 in one years time. If Deb’s saving account earns a discount rate of 3% compounded monthly, calculate how much she must deposit now to reach her goal. 1500 1 − .03 12 12 1455.61...
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This note was uploaded on 03/30/2012 for the course ACTSC 231 taught by Professor Chisholm during the Spring '09 term at Waterloo.
 Spring '09
 Chisholm

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