Compounding periods can greatly affect amount of interest

Assignment Help Financial Management

Reference no: EM131049118

The number of compounding periods can greatly affect the amount of interest (as a percent or in real value) paid when considering loans. The compounding frequency can also affect investments through which we earn interest. How is this? Also, how do we adjust the TVM formula to account for compounding periods?

Reference no: EM131049118

Questions Cloud

Components of consumption spending : According to the Keynesian model, what are the two components of consumption spending? What factors determine how consumption changes when real disposable income changes? Explain.

Spot exchange rate-comparison to the dollar : Assume the spot exchange rate is 6.22 Chinese yuan per U.S. dollar. If the inflation rate in China is expected to be double that in the U.S. for the next two years, then what will happen to the yuan in comparison to the dollar?

What is the percentage of compression you achieve above : What is the percentage of compression you achieve above? (This is the average of the compression percentages achieved for each letter, weighted by the letter's frequency.)

Organized manner and cite specific examples : How did they achieve their goals? How did their efforts affect life today? Present your response in a clear, organized manner and cite specific examples.

Compounding periods can greatly affect amount of interest : The number of compounding periods can greatly affect the amount of interest (as a percent or in real value) paid when considering loans. The compounding frequency can also affect investments through which we earn interest. How is this? Also, how do w..

Production possibility frontier : Which of the following statements about productive efficiency is true? X It means that an economy is producing at a point on its production possibility frontier.

Instead of making the monthly payment : You decide to take a 30-year mortgage of $ 170,000 offered by Oppenheimer Bank. Instead of making the monthly payment of $ 1,080.08 every month, you can make half the payment every two weeks (so that you will make 52 2 = 26 payments a year). How long..

What compression ratios are you able to achieve : What compression ratios are you able to achieve? See if you can generate data files for which you can achieve 5:1 or 10:1 compression ratios.

On the anniversary of the last payment : A rich aunt has promised you $6,000 one year from today. In addition, each year after that, she has promised you a payment (on the anniversary of the last payment) that is 2% larger than the last payment. She will continue to show this generosity for..

User Account

All Pages