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Changing Compounding Frequency Thing Annual Semiannual And QuarterlyCompounding Periods. (1) Calculate The Bestuu Vahou ? 55.600 Is DepositedEnklaly At 0%, Arenal Interest For 5 Years And 2) Deurmine The ElectionAnnuale (AR) Annual Compounding (1) The Return Vale. FVS. Round To TheNearest Cont 2) If The 8% Unul Nominal Rute La Compounded Way, The …

"Changing Compounding Frequency Thing Annual Semiannual And Quarterly  Compounding Periods. (1) Calculate The Bestuu Vahou ? 55.600 Is Deposited  Enklaly At 0%, Arenal Interest For 5 Years And 2) Deurmine The Election  Annuale (AR) Annual Compounding (1) The Return Vale. FVS. Round To The  Nearest Cont 2) If The 8% Unul Nominal Rute La Compounded Way, The ..."

Transcribed Text:

Question: Changing compounding frequency thing annual semiannual an… real 55.000 is deposited ayat 8% interest for years and determines the sector Changing compounding frequency Uning annual seams and quarterly compounding periods. (1) cate the annuleLAR) Annual Compounding (1) The future vale, FV. Round to the nearest cant) 2) If the 8% rominal rate is compounded by the EARIS I (Roond to two decimal places) Semangat Comending (1) The Bare va FU, Round to the nearest cent) 2) If the 0% anual dominal rate is compounded annually the EARIS Round to two decimal places) Quarterly. Compounding (1) The future value FV I (Round to the nearest cent) 21 if the annust nominal rate is compounded quarterly, the EARS (Round to ho decimal places Show transcribed image text Expert Answer Anonymous answered this 1,183 answers Was this answer helpful? 30 Given Information Amount (A) 5,000 Annual Interest Rate (r) Term (years) (n) Let the frequency of compounding per year bem Then FV = A*(1+r/m)(m*n) EAR = (1+r/m) – 1 Annual Compounding Frequency of compounding = m = 1 (1) FV = A*(1+r/m/(m*n) = 5000*(1+0.08/1)(1+5) = $ 7,346.64 (2) EAR = (1+r/m) – 1 = (1+0.08/1)+ – 1 = 8.00% Semiannual Compounding Frequency of compounding = m = 2 (1) FV = A*(1+r/m}(m*n) = 5000*(1+0.08/2/(2*5) = $ 7,401.22 (2) EAR = (1+r/m) – 1 = (1+0.08/2)2 – 1 = 8.16% Quarterly Compounding Frequency of compounding = m = 4 (1) FV = A*(1+r/m/(m*n) = 5000*(1+0.08/4)(4*5) = $ 7,429.74 (2) EAR = (1+r/m) – 1 = (1+0.08/4)4 – 1 = 8.24%

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