Question 1

If the effective rate of interest on an investment is 7%,what is the nominal rate of interest compounded quarterly?

Accepted Answer

@#IMG-DLM& The nominal annual

Question 2

In how many years will money double at 8% compounded yearly?

Accepted Answer

A) 0.09 years 
B) 0.9 years 
C) 9.01 years 
D) 90.1 years 
E) 2 years 
A) 0.09 years 
B) 0.9 years 
C) 9.01 years 
D) 90.1 years 
E) 2 years

Question 3

A financial obligation requires the payment of $1000.00 in nine months,and $500.00 in twelve months.When can the obligation be discharged by a single payment of $1700.00 if interest is 12% compounded quarterly?

Accepted Answer

Let the focal date be now; i = 0.12 ÷ 4

Question 4

How long did it take for $1635 to increase to $2310 if the investment earned interest at a rate of 8.08% compounded quarterly (give your final answer in years and months,e.g.,3 years and 7.23 months)?

Accepted Answer

A) 7 years 7.69 months 
B) 4 years .64 months 
C) 3 years 4.79 months 
D) 4 years 3.84 months 
E) 8 years 1.69 months 
A) 7 years 7.69 months 
B) 4 years .64 months 
C) 3 years 4.79 months 
D) 4 years 3.84 months 
E) 8 years 1.69 months

If the effective rate of interest on an investment is 7%,what is the nominal rate of interest compounded quarterly?

In how many years will money double at 8% compounded yearly?

A financial obligation requires the payment of $1000.00 in nine months,and $500.00 in twelve months.When can the obligation be discharged by a single payment of $1700.00 if interest is 12% compounded quarterly?

How long did it take for $1635 to increase to $2310 if the investment earned interest at a rate of 8.08% compounded quarterly (give your final answer in years and months,e.g.,3 years and 7.23 months)?

Review of Arithmetic

Review of Basic Algebra

Ratio,proportion,and Percent

Linear Systems

Cost-Volume-Profit Analysis and Break-Even

Trade Discounts, cash Discounts, markup, and Markdown

Simple Interest

Simple Interest Applications

Compound Interestfuture Value and Present Value

Ordinary Simple Annuities

Ordinary General Annuities

Annuities Due, deferred Annuities, and Perpetuities

Amortization of Loans,including Residential Mortgages

Bond Valuation and Sinking Funds

Investment Decision Applications

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Exam 10: Compound Interestfurther Topics

If the effective rate of interest on an investment is 7%,what is the nominal rate of interest compounded quarterly?

In how many years will money double at 8% compounded yearly?

A financial obligation requires the payment of $1000.00 in nine months,and $500.00 in twelve months.When can the obligation be discharged by a single payment of $1700.00 if interest is 12% compounded quarterly?

How long did it take for $1635 to increase to $2310 if the investment earned interest at a rate of 8.08% compounded quarterly (give your final answer in years and months,e.g.,3 years and 7.23 months)?

Review of Arithmetic

Review of Basic Algebra

Ratio,proportion,and Percent

Linear Systems

Cost-Volume-Profit Analysis and Break-Even

Trade Discounts, cash Discounts, markup, and Markdown

Simple Interest

Simple Interest Applications

Compound Interestfuture Value and Present Value

Ordinary Simple Annuities

Ordinary General Annuities

Annuities Due, deferred Annuities, and Perpetuities

Amortization of Loans,including Residential Mortgages

Bond Valuation and Sinking Funds

Investment Decision Applications

Filters