What must be nominal and effective interest rates per year

Reference no: EM13224945

1. John spends $6,000 and in return receives 6 semi-annual payments of $1,100 Calculate the effective interest rate per year.

2. An engineer starts to make quarterly deposits of $1,500 (at the end of a quarter) into an investment account at age of 45. If he wants to have $250,000 when he retires at age of 65, what must be the nominal and effective interest rates per year?

Reference no: EM13224945

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