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What is the effective rate of interest

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Question - Use time value of money tables, Excel, or a financial calculator to calculate the values for each scenario. Remember to include all inputs and outputs and clearly mark your answers on your uploaded Word doc or Excel spreadsheet. Assume "end-of-period" payments when configuring your inputs into Excel or a financial calculator (in Excel, this equates to using a zero as the last input into the formula as the "[type]").

-You invest $14,000 today at 6% per year. How much will you have in 18 years?

-What is the current value of $145,000 after 10 years if the discount rate is 11%?

-You invest $6,000 annually for 20 years at 8%. How much will you have after 20 years?

-How much must you set aside each year to accumulate $100,000 after 15 years? The interest rate is 8.5%.

-How much must you repay each year for five years to pay off a $50,000 loan that you just took out? The interest rate is 4%.

-A credit card company quotes a nominal APR (annual percentage rate) of interest of 15%. What is the effective rate of interest? Please explain your solution.

Reference no: EM133017738

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