1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
solniwko [45]
3 years ago
12

A bill for $100 is purchased for $96 three months before it is due. Find: 1 The nominal rate of discount convertible quarterly e

arned by the purchaser 2 The annual effective rate of interest earned by the purchaser.
Mathematics
1 answer:
Dovator [93]3 years ago
5 0

Answer:

1. The nominal interest rate  is 16.67%

2. The effective interest rate is 4.17%

Step-by-step explanation:

1.firstly we use the information given:

face value of bill is$100 which is denoted by Fv below.

$96 is the present value Pv of the bill denoted below.

thereafter we have n the number of periods of compounding which is 1 period.

we use the following formula for this problem to find i the nominal interest rate:

Fv = Pv(1+i)^n

then we substitute the above mentioned values.

$100 = $96 ( 1+i/m)^1 divide both sides by $96

(100/96) = 1+ i/4   then subtract both sides by 1

(100/96)- 1 = i/4

0.0416666666667 = i/4 then multiply by 4 both sides as this was compounded quarterly so four times a year then multiply by 100 for percentage.

16.67% = i which is the nominal interest rate

2. ieffective = (1+i nominal/n)^n  -1

ieffective= (1+16.67%/4)^1 - 1

ieffective = 4.17%

You might be interested in
What is 7 times 9 in multiplti
NemiM [27]
The answer is 63. 9 times 7 is 63
7 0
3 years ago
Read 2 more answers
I need help on #10. very confused
RideAnS [48]

Step-by-step explanation:

\displaystyle f'(x) = \lim_{h \to 0} \dfrac{f(x + h) - f(x)}{h}

\:\:\:\:\:\displaystyle = \lim_{h \to 0} \dfrac{(x+h)^2 -7 -(x^2 - 7)}{h}

\:\:\:\:\: \displaystyle= \lim_{h \to 0} \dfrac{(x^2 +2hx + h^2 -7) - (x^2 -7)}{h}

\:\:\:\:\: \displaystyle= \lim_{h \to 0} \dfrac{2hx + h^2}{h}

\:\:\:\:\: \displaystyle= \lim_{h \to 0} (2x +h)

\:\:\:\:\: \displaystyle= 2x

3 0
3 years ago
Please help. I’ll mark you as brainliest if correct
blondinia [14]

The first question, it is decreasing because the slope is negative.

8 0
3 years ago
4a-3 is greater than or equal to -6a-5
Slav-nsk [51]

be more specific, what do you want me to find?

3 0
3 years ago
Evaluate 14 - 2xy when x = -6 and y = 2.
valkas [14]

Answer: 38

Step-by-step explanation:

14 - 2xy

(substitute x and y)

14 - 2 (-6) (2)

14 + 24

38

8 0
3 years ago
Read 2 more answers
Other questions:
  • Helppppp pleaseeeeeee?????
    10·1 answer
  • Simplify 3m + 8 -x = -24
    9·2 answers
  • describe the graph of y=x^2 in words so that someone in a different room could understand exactly what it looks like explain wha
    15·1 answer
  • A medical rescue helicopter is flying at an average speed of 172 miles per hour toward its base hospital. At 2:42 p.m., the
    7·1 answer
  • The area of the region under the curve of the function f(x) = 5x + 7 on the interval [1, b] is 88 square units, where b > 1.
    13·2 answers
  • The point of intersection of the line through the point (2, 1, 0) parallel to the vector u= (1, -1, 2) with the plane with equat
    14·1 answer
  • There are 135 cal in a 1/4 cup serving of trail mix how many calories are in 2 cups of trail mix?
    6·2 answers
  • Which of the following equations represent a line that has a slope of –5 and that passes through (2, –6)? Check all of the boxes
    15·1 answer
  • What is 76+1 in math
    9·2 answers
  • Choose the correct statement. Consider the expression: 6.43
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!