Michael is a part of a new product development team that operates nearly autonomously from its parent organization—worldlogix. w
2 answers:
You might be interested in
Solution :
Annual payment =
1. The rate of interest annually = 12%
Present value
= $ 18,023.90
2. The rate of interest annually = 12%
Present value
= $ 20,186.75
3. The rate of interest annually = 12%
The rate of interest quarterly = 3%
Present value =
Answer:
a. 5.18%;
b. 10.12%;
c. 6.32%;
d. 9.22%.
Explanation:
We apply the formula of Annual rate of return to calculate for the four cases.
The formula for calculating annual rate of return as below:
Annual rate of return = -1 ;
So, for each of the case given, by applying the formula, the detailed calculations for each case will be:
+ For case a :
= 5.18%;
+ For case b:
= 10.12%;
+ For case c:
= 6.32%;
+ For case d:
= 9.22%.