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valkas [14]
4 years ago
6

A loan requires that the 8% interest be compounded quarterly for 4 years. Find the number of compounding periods

Business
1 answer:
EastWind [94]4 years ago
7 0

Answer:

16

Explanation:

Compounding periods are the number of times interest is paid to an investment per year. For example, annual compounding means that interest will be paid once a year hence compounding period would be 1.

If semiannualIy, interest would be paid twice a year hence 2 compounding periods per year. In this case, quarterly compounding means that interest payment occur every 3 months hence 4 quarters a year.

In 4 years, total compounding periods would be; 4 *4 = 16 periods.

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Answer:

Online discussion forum

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According to TASB, school districts may approach voters to issue bonds for?
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When consumers and businesses have greater confidence that they will be able to repay in the future, _______________________. Qu
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When consumers and businesses have greater confidence that they will be able to repay in the future, <u>the quantity demanded of financial capital at any given interest rate will shift to the right.</u>

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3 years ago
A catalog company that receives the majority of its orders by telephone conducted a study to determine how long customers were w
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The waiting time at which 10 percent of the people would continue to hold is given as 2.3

<h3>How to solve for the waiting time</h3>

We have to solve for X ~ Exponential(λ).

then E(X) = 1/λ = 3,

= 0.3333

Remember that the cumulative distribution function of X is F(x) = 1 - e^(-λx). ;  x is equal to the  time in over case

For 10 percent of the people we would have a probability of

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we are to find

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= 1 - e^(0.3333)(t) = 0.1

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nirvana33 [79]

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This is the same for the military. When they send recruits to boot camps, they are doing their version of employee orientation because the recruit will learn what Uncle Sam expects from them and how they are to accomplish these tasks.

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