Westonci.ca is your trusted source for accurate answers to all your questions. Join our community and start learning today! Get detailed answers to your questions from a community of experts dedicated to providing accurate information. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.
Sagot :
Answer:
1) 202.52
2) P107089
Step-by-step explanation:
Compound interest is calculated as
A = P (1 + r/n)^(nt), where
A = compounded interest
P = present value
r = interest
n = number of times interest applied
t = time taken
A = 200 (1 + 0.25%/30)^(30 * 5)
A = 200 (1 + 8.3*10^-5)^150
A = 200 * 1.0126
A = 202.52
Present Value Annuity Due is usually given by the formula
P = c*((1-(1+ i)^(-n))/i)*(1 + i ), where
P is the present value
C is the Cash flow per period
i is the interest rate and
n is the number of payments
P = 10000*((1-(1+ 12/1200)^(-1*12))/(12/1200))*(1+12/1200)
P = 113676
Also, it's worthy of note that
Effective Annual Rate = [(1 +stated rate/no. of compounding periods) ^no of compounding periods - 1]* 100
EAR = ((1+12/(12*100))^12-1)*100
EAR = 12.68%
And lastly, the
Future value = present value*(1+ rate)^time
113676 = Present value*(1+0.1268)^0.5
Present Value = 113676 / 1.1268^0.5
Present Value = 113676 / 1.0615
Present value = 107089
Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.
