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# Leave pd set to 1 for example to compute ch percent

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Unformatted text preview: 38 7.00 611.94 NEW = \$700 represents a 6.38% increase over the original forecast of \$658. A decrease of 7% would result in a new actual amount of about \$612. Example: Compound Interest You purchased some stock for \$500 in 1995. Five years later, you sell the stock for \$750. What was the annual growth rate? Procedure Keystrokes Display Select Percent Change/Compound Interest worksheet. OLD (old contents) Clear worksheet. OLD = 0.00 OLD = 500.00 NEW = 750.00 Enter stock purchase price. Enter stock selling price. Enter number of years. 500 750 5 Compute annual growth rate. #PD = 5.00 %CH = 8.45 The annual growth rate is 8.45%. Chapter 7: Using Other Worksheets 59 Example: Cost-Sell-Markup The original cost of an item is \$100, and the selling price is \$125. Find the markup. Procedure Keystrokes Display Select Percent Change/Compound Interest worksheet. OLD (old contents) Clear worksheet. OLD = 0.00 OLD = 100.00 NEW = 125.00 %CH = 25.00 Enter original cost. 100 Enter selling price. 125 Compute percent markup. The markup is 25%. The Interest Conversion Worksheet Press to access the Interest Conversion worksheet. Interest Conversion Worksheet Labels Label Meaning Type of Variable NOM Nominal rate Enter/compute EFF Annual effective rate Enter/compute C/Y Compounding periods per year Enter-only Notes on the Interest Conversion Worksheet sets NOM and EFF to zero, but does not affect C/Y. sets NOM and EFF to zero, and C/Y to 12. You can convert a nominal rate to an annual effective rate, or vice versa. Enter a value for NOM or EFF as an annual rate. Background Information You may need to compare interest rates on investments that have the same nominal interest rate (annual percentage rate) but a different number of compounding periods per year. In these situations, simply comparing the nominal rates is misleading. Before you can make a valid comparison, you should convert the nominal interest rate (NOM) to the annual effective interest rate (EFF) for each investment. 60...
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## This homework help was uploaded on 04/03/2014 for the course ECON 203 taught by Professor Petry during the Summer '09 term at University of Illinois, Urbana Champaign.

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