Y2 - Y1. 9 - 6. 3
———— = ——- = — = 3
X2 - X1. 3 - 2. 1
Point III is about <em>real interest rate</em>
point I doesn't apply since both nominal and effective ir are calculated by year
let alone the fact that if you look close to those numbers it would probably mean that the loan had 1year and 1 day duration :)
the II answer is the correct one
if the loan is compounded at 6 months you have to add the interest of the first 6 months interest to the total interest to find out the effective interest rate
Step-by-step explanation:
-6x-2y+8
-6x -6x
÷-2 (-2y=-6x+8)
3x=-4
x= 3x
y= -4
y=-4-3x
maybe try -5 since the rise/run is 5/1 and the slope is negative
Answer:
8.5
Step-by-step explanation:
For continuous compounding, the account value formula is ...
A = Pe^(rt)
where P is the invested amount, r is the annual interest rate, and t is the number of years. We want to find t when ...
3550 = 2400e^(.046t)
ln(355/240) = 0.046t
t = ln(355/240)/0.046 ≈ 8.5
It will take 8.5 years for the value to reach $3550.
