Compute the effective annual rate of interest

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Reference no: EM131048539

1. Find the equated date at which two payments of $6000 due four months ago and $400 due today could be settled by a payment of $1100, if interest is 7.25%compounded semiannually.

2. Compute the effective annual rate of interest A) For 6% compound annually b) At which $1100 will grow to $2000 in seven years if compounded quarterly?

3. Kaye deposited $6000 into saving account today. For how long can $730 be withdrawn from account at the end of every three months from now if the interest is 3.9% compounded quarterly?

4. Compute the nominal annual rate of interest compounded monthly at which $400 paid at the end of the month for eight years accumulates to $45000 5. What nominal annual rate of interest was charged on a loan of $5600 repaid in end-of -month installments of $121.85 in four and a half years?

Reference no: EM131048539

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