determine i. the interest rate for each conversion period ii. the number of conversion periods
1. a deposit at 8.2%/a, compounded quarterly, for 16 months
2. a loan at 5.2%/a, compounded weekly, for 2 years
Determine: i. the amount ii. ii. the interest earned
a. $7500 invested for 6 years at 6%/a, compounded monthly
b. $28 200 invested for 10 years at 5.5%/a compounded semi-annually
+118690 1. 8.2% pa compounded quarterly is really 8.2/4 % per quarter, (because there are 4 quarters in a year)
16 months = 16*4 = 64 quarters.
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a. $7500 invested for 6 years at 6%/a, compounded monthly
6% per annum compounded monthly is really 0.5% = 0.005 per month
6*12=72 months
7500*1.005^72 = $10740.33
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You can do the other 2 yourself.
