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Lady_Fox [76]
3 years ago
10

Identify the compounding period for the following interest statements: ( a ) 3% per quarter; ( b ) 10% per year, compounded semi

annually; ( c ) nominal 7.2% per year, compounded monthly; ( d ) effective 3.4% per quarter, compounded weekly; and ( e ) 2% per month, compounded continuously
Business
1 answer:
lutik1710 [3]3 years ago
6 0

Answer:

A) 3% per quarter As the rate is expresses as quarterly there are no subperiods.

b) 10% per year, <u>compounded semiannually</u> 2 period per cycle

c) nominal 7.2% per year,<u> compounded monthly;</u>

12 period per cycle

d ) effective 3.4% per quarter, compounded weekly

12 periods as we assume 4 weeks per month an a quarter has 3 months

( e ) 2% per month, compounded continuously

infinite periods as continuously compounding represent an hypothetical full use of compound capitalziation over a given period of time

Explanation:

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44% annual interest sounds too good to be true, but we'll work with it.
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<h3>How to calculate the department contribution to overhead?</h3>

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<h3>What are direct expenses?</h3>

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To know more about gross profit, visit:

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