This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: For a nominal interest rate of 9%, what is the compounding frequency if the periodic interest is 0.75%? (Read 211 times)

BRWH

  • Hero Member
  • *****
  • Posts: 553
on: Jun 6, 2019

Question 1

Sagheer received two offers for his property that he is selling. Offer 1 consists of $700 000 immediately and offer 2 consists of $500 000 now and $110,000 per annum for the next 2 years. If money earns 6% compounded semi-annually, which offer has a better economic advantage and by how much. Assume no inflation or discount?
◦ Offer 2 is better by ~$1600
◦ Offer 1 is better by ~$1600
◦ Offer 2 is better by ~$5100
◦ Offer 1 is better by ~$5100
◦ Offer 2 is better by ~$20 000

Question 2

For a nominal interest rate of 9%, what is the compounding frequency if the periodic interest is 0.75%?
◦ 12
◦ 8
◦ 24
◦ 6
◦ 1
Contemporary Business Mathematics with Canadian Applications ¦ Hummelbrunner, Halliday, Coombs ¦ 11th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by BRWH on Jun 6, 2019

gasdhashg

  • Sr. Member
  • ****
  • Posts: 335
Reply #1 on: Jun 6, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 49% of students answer this correctly


BRWH

  • Hero Member
  • *****
  • Posts: 553
Reply #2 on: Jun 6, 2019
Thank you!


gasdhashg

  • Sr. Member
  • ****
  • Posts: 335
Reply #3 on: Jun 6, 2019
Always glad to help...


« previous next »
 

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Did you know?

Oliver Wendell Holmes is credited with introducing the words "anesthesia" and "anesthetic" into the English language in 1846.

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

Essential fatty acids have been shown to be effective against ulcers, asthma, dental cavities, and skin disorders such as acne.

Did you know?

The Romans did not use numerals to indicate fractions but instead used words to indicate parts of a whole.

Sample Workout in the Target Heart Rate Range Sample Workout in the Target Heart Rate Range
Maximal Heart Rate Over Time Maximal Heart Rate Over Time
A scope display showing a normal Chevrolet Equinox MAF sensor at idle speed. the frequency is 2,600 ... A scope display showing a normal Chevrolet Equinox MAF sensor at idle speed. the frequency is 2,600 ...
Apothecary measures of weights were often used for prescription writing, especially for compounding. ... Apothecary measures of weights were often used for prescription writing, especially for compounding. ...
A $50 000 bond bearing interest at 6.5% bond payable semi-annually matures in 10 years. If it ... A $50 000 bond bearing interest at 6.5% bond payable semi-annually matures in 10 years. If it ...
Two normal frequency distributions with the same mean but different amounts of variation Two normal frequency distributions with the same mean but different amounts of variation
Video: Uterine (menstrual) cycle - phases

For a complete list of videos, visit our video library