Effective interest rate, Computation of PV, FV, Simple and

Effective interest rate

Reference no: EM1316368

Computation of PV, FV, Simple and effective interest rate.

1. Find the effective rate corresponding to 3% compounded quarterly.

2. What is the ending balance from an initial deposit of $5,000 at 14% compounded monthly for 4 years?

3. Find the amount of interest earned on a deposit of $1,609.25 at 13% compounded monthly for 90 months.

4. Find the present value of $10,425 in 39 months at 13.75% compounded monthly.

5. Find the value of an annuity where $275 is deposited at the end of each quarter for 3 years and the interest rate is 9.5% compounded quarterly.

6. Find the simple interest on $24,281 at 12 3/4% (per annum) from June 8 of one year to February 14 of the next year.

7. Determine the amount of each payment to be made to a sinking fund with 10 annual payments compounded at 14% annually, in order that enough money will be available to pay off a loan of $5,000.

Reference no: EM1316368

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