SOLUTION: 1. What nominal rate compounded semi-annually is equivalent to a 10% effective rate? 2. Suppose 80,000 is due at the end of 4 years with interest at 10% compounded quarterly.

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Question 1193409: 1. What nominal rate compounded semi-annually is equivalent to a 10%
effective rate?
2. Suppose 80,000 is due at the end of 4 years with interest at 10%
compounded quarterly. If money is worth 14% compounded quarterly,
what is the value of obligation,
a? Now,
b. At the end of 3 years, and
c. At the end of 6.5 years
Answer by ikleyn(53937) About Me  (Show Source):
You can put this solution on YOUR website!
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