What is the effective annual rate on certificate of deposit

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Reference no: EM131976579

1. You will deposit $2,000 at the end of each of the next 3 years. If the interest rate is 10 percent, how much will you have accumulated in 10 years?

2. What is the present value of a 10-year annuity with $5,000 for its annual payment, if the discount rate is 10%? The first payment will occur 10 years from now.

3. What is the effective annual rate on a certificate of deposit that promises to pay interest at a 14 percent annual rate, compounded quarterly?

Reference no: EM131976579

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