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For each situation, determine i. the interest rate for each conversion period ii. the number of conversion periods

a. an investment at 5%/a, compounded annually, for 5 years

b. a deposit at 8.2%/a, compounded quarterly, for 16 months

c. an investment at 4.5%/a, compounded semi-annually, for 42 months

d. a loan at 5.2%/a, compounded weekly, for 2 yearsv

 Feb 12, 2021
edited by Guest  Feb 12, 2021
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Here is how to do one.....the rest are similar

 

c.)  a deposit at 4.4%/a, compounded quarterly, for 7 years

        .044 is interest in decimal

            4 periods per year    .044/4 = .011 interest PER PERIOD

                 7 years with QUARTERLY periods = 28 PERIODS
                       i =  (1 + .011)28  - 1 = .358   35.8%

 Feb 12, 2021

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