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Murrr4er [49]
2 years ago
6

Assume the annual interest rate is 6%. Calculate the value of an investment that pays $100 every two years, starting two years f

rom now and continuing forever.
Business
1 answer:
Serga [27]2 years ago
5 0

principal = p

annual interest rate R = 6%

1-year time t

interest amount = p+t/100

The 2-year interest rate is 100 and the time is 2

100= p×2×6/100

100 × 100/ 2×6=p

p=10000/ 12

=5000/6

=2500/3

=833.33

investment = 833.3

number of compounding periods)) ^ (number of compounding periods) - 1. For investment A, this is: 10.47% = (1 + (10% / 12)) ^ 12 - 1. investment For B, it looks like this: be : 10.36% = (1 + (10.1% / 2)) ^ 2 - 1.

The formula for converting simple interest to annual compound interest is (1 + R/N)N - 1 where R is the simple interest rate. , where N is equal to the number of compounded interest in one year. Future Value Formula The superscript n represents the number of compounding periods that occur during the period you are calculating. ...

3) FV = $1,000 x (1 + 0.1)5

Learn more about interest here;

brainly.com/question/24924853

#SPJ4

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