Find the effective rate of the compound interest rate or investment. (Round your answer to two...

50.1K

Verified Solution

Question

Finance

Find the effective rate of the compound interest rate orinvestment. (Round your answer to two decimal places.)

A $50,000 zero-coupon bond maturing in 9 years and selling nowfor $42,035.

determine the amount due on the compound interest loan. (Roundyour answers to the nearest cent.)

$14,000 at 4% for 15 years if the interest is compounded in thefollowing ways.

(a) annually
$

caculate the present value of the compound interest loan. (Roundyour answers to the nearest cent.)

$29,000 after 8 years at 5% if the interest is compounded in thefollowing ways.

(a) annually
  

(b) quarterly


(b) quarterly

Answer & Explanation Solved by verified expert
3.9 Ratings (747 Votes)
Answer to question 1 Effective rate on bond redeemable at par50000 now selling at 42035 due 9 years down the lineEffective interest rate is such a rate at which PV of Inflows PV of Outflows    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students