3.) Effective interest rate You borrow $240,000; the annual loan payments are $3

Question

3.) Effective interest rate

You borrow $240,000; the annual loan payments are $36,552.05 for 30 years. What interest rate are you being charged? Round your answer to two decimal places.

4.) Future value for various compounding periods

Find the amount to which $300 will grow under each of these conditions:

7% compounded annually for 8 years. Round your answer to the nearest cent.
$??

7% compounded semiannually for 8 years. Round your answer to the nearest cent.
$??

7% compounded quarterly for 8 years. Round your answer to the nearest cent.
$??

7% compounded monthly for 8 years. Round your answer to the nearest cent.
$??

7% compounded daily for 8 years. Round your answer to the nearest cent.
$??

5.) Present value for various discounting periods

Find the present value of $800 due in the future under each of these conditions:

15% nominal rate, semiannual compounding, discounted back 10 years. Round your answer to the nearest cent.
$  

15% nominal rate, quarterly compounding, discounted back 10 years. Round your answer to the nearest cent.
$  

15% nominal rate, monthly compounding, discounted back 1 year. Round your answer to the nearest cent.
$  

Explanation / Answer

Part A

A = P * {[r(1+r)^n]

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