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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: CostSellMarkup
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 Enteronly 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.
 Summer '09
 PETRY

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