Business Mathematics Compound Interest Discussion
3. What semiannually compounded rate is equivalent to 6% compounded:a. Annually?b. Quarterly?c. Monthly?
4. What monthly compounded interest rate is equivalent to 6% compounded:a. Annually?b. Semiannually?c. Quarterly?
5. What quarterly compounded rate is equivalent to 7.5% compounded semiannually?
6. What semiannually compounded rate is equivalent to 8.5% compounded quarterly?
7.For a three-year GIC investment, what nominal rate compounded monthly would put you in thesame financial position as 5.5% compounded semiannually?
8. You are offered a loan at a rate of 9% compounded monthly. Below what nominal rate ofinterest would you choose semiannual compounding instead?
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