A bill for $100 is purchased for $96 three months before it is due. Find: 1 The nominal rate of discount convertible quarterly e
1 answer:
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:
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+16.67%/4)^1 - 1
ieffective = 4.17%
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Answer: See below
Step-by-step explanation:
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b) Let the function be: y = mx + b
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So:
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c = 120
Now the slope:
Therefore, the equation that best fits the data is y = 8x + 120
c) The slope in the function represents the constant rate of change, meaning that as the number of employees increases by 1, the number of products produced monthly increases by 20. While the y-intercept of the plot, which is 120, indicates the constant number of products, that is to say, when there are no employees, there are still 120 products.
Answer:
Option D.
Step-by-step explanation:
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Therefore, the correct option is D.