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I haven't gotten the answer to that test question either....the choices seem wrong
The annual equivalent rate is 15.5625%. The amount invested is irrelevant to calculation of the equivalent rate.
The rate is 15.56%. The amount invested is irrelevant in this calculation.
A= Principle amount(1+ (rate/# of compounded periods))(#of compounding periods x # of years)
£765.31
Semiannually over two years is equivalent to 4 periods. If the interest is 12% every 6 months, then the amount of interest is It is 8000*[(1.12)4 -1] =4588.15
I haven't gotten the answer to that test question either....the choices seem wrong
The annual equivalent rate is 15.5625%. The amount invested is irrelevant to calculation of the equivalent rate.
You should have 5976.51 provided the fractional units of interest earned are also rolled into the capital.
$44,440.71
$491
The rate is 15.56%. The amount invested is irrelevant in this calculation.
The future value of $600 invested for 5 years at an 8% interest rate compounded semiannually can be calculated using the formula FV = P(1 + r/n)^(nt), where FV is the future value, P is the principal amount, r is the interest rate, n is the number of times the interest is compounded per year, and t is the number of years. In this case, P = $600, r = 8% = 0.08, n = 2 (since interest is compounded semiannually), and t = 5. Plugging these values into the formula, we get FV = 600(1 + 0.08/2)^(2*5) = $925.12. Therefore, the future value of the investment after 5 years would be $925.12.
If you opened a savings account and deposited 5000 in a six percent interest rate compounded daily, then the amount in the account after 180 days will be 5148.
No. The loss would normally be compounded so it would amount to 71.8%
I can give you several sentences.Your back-talk only compounded your trouble, young man!He compounded the amount of work he'd have to do.The pharmacist compounded a special lotion for her rash.
A= Principle amount(1+ (rate/# of compounded periods))(#of compounding periods x # of years)