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Author Question: For a nominal interest rate of 9%, what is the compounding frequency if the periodic interest is 0.75%? (Read 209 times)

BRWH

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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
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Marked as best answer by BRWH on Jun 6, 2019

gasdhashg

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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.
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BRWH

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Reply #2 on: Jun 6, 2019
Thank you!


gasdhashg

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Reply #3 on: Jun 6, 2019
Always glad to help...


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