A bank pays a quoted annual (nominal) interest rate of 8. However, it pays interest (compounded) daily using a 365-day year. What is the effective annual rate of return?
A) 7.86
B) 7.54
C) 8.57
D) 8.33
E) 9.21
Question 2
1,200 is received at the beginning of year 1, 2,200 is received at the beginning of year 2, and 3,300 is received at the beginning of year 3. If these cash flows are deposited at 12 percent, their combined future value at the end of year 3 is:
A) 6,700
B) 17,000
C) 12,510
D) 7,504
E) 8,141
Primary production is positively correlated with the evapotranspiration rate.
Rate enhancement by entropy reduction
How to convert units of any rate to another (Part 2)
How to calculate annuity when compounded semi-annually (Part 1)
If you are able to earn 6.2% compounded semi-annually in an account, how long will it take for ...
A bank statement shows a balance of $2,970.31 The check register of the account owner shows an ...