A bank offers two types of interest accounts. The first account receives 8% interest compounded quarterly. The second account receives 6% interest compounded continuously. Which account is better and why??
On July 1, B.Good borrowed $2000 from G. Whiz and agreed to pay the debt plus 8% simple interest in 270 days. Thirty days after borrowing the money, B. Good settled the debt by having it discounted at a simple interest rate of 7%. How much did G. Whiz recieve?
On June 1, Fanger and Rampke buy merchandise amounting to $3000. If they pay cash, they will get a 2%discount. To take advantage of this cash discount, they sign a 60-day non interest bearing note at their bank which charges 10% interest. a. What should be the face value of the note to give them the exact amount they need to ...continues
If the principal is $2000 and the interest rate is 10% compounded semi- annually for the first 4 years and 12% compounded semi-annually for the next 5 years, what is the amount at the end of the ninth year?
If $1,000 amounts to $1,750 in six years, what is the nominal interest rate compounded semi - annually? (show all work)
Find the rate of interest if money is worth 18% compounded monthly?
A non interest bearing note of $2000 is discounted at 12% compounded quarterly for 5 years and 8 months. What are the proceeds?
John recently incurred the following debts: 1. $500 due in one year 2. $800 plus interest at 12% compounded semi-annually due in two years. He wishes to discharge these debts by making 3 equal payments. THe first payment will be due in 6 months, the second in 18 months and the third in 30 months. What is the size of these p ...continues
An apartment is rented for $450 per month, each month's rent is payable in advance.
An apartment is rented for $450 per month, each month's rent is payable in advance. If money is worth 12% compounded monthly, what is the cash value of the rent for one year?
John Doe borrowed $5000 and agreed to repay the principal and interest at 15% compounded monthly in 25 equal monthly payments. The first payment is due in 1 1/2 years. How large is each payment?
