Complete the table below by computing the efective rate of interest. Use 4 decimal places SHOW YOUR SOLUTION Effective interest rate Effective interest rate Effective interest rate Effective interest...

Please help me to answer this thanks.

Extracted text: Complete the table below by computing the efective rate of interest. Use 4 decimal places SHOW YOUR SOLUTION Effective interest rate Effective interest rate Effective interest rate Effective interest rate Effective interest rate (mouth) Nominal Rate (bi- month) (quarter) (semi anmual) (year) 8% compoшded semi annually 8% compounded monthly 8% compoшded quarterly 8% compounded bi monthly 8% compoшded continously 2. You borrow $ 25,000 at 12.25% interest compounded monthly. If you are unable to make any payments for 3 years, how much do you owe at the end of 3 years? 3. In how many years ill it take $18,000 accumulate to $20,000 when you deposited in a savings account that earns 0.25% compounded monthly? 4. An advertisement of an investment firm states that if you invest $500 in their firm today you will get $1000 at the end of 4.5 years. What nominal rate is implied if interest is compounded a) quarterly b) monthly. Determine also the effective rate of interest in each case. 5. The IE Department is considering to buy a printing machine that is expected to be obsolete in 5 years. The machine is worth P100,000, The prevailing interest rate is 15%lyear. the estimated annual gross incomes from the use of this machine is as follows: Year Income P 20, 000 P 25, 000 P 35, 000 Р 30, 000 P 28, 000 1 2 3 4 Should the IE Department purchase the machine? |