ordinary problems: they just write down the answers. Interest and Exponential Growth (Math | General | Interest and Exponential Growth) The Compound Interest Equation P = C (1 + r/n) nt where P = future value C = initial deposit r = interest rate (expressed as a fraction: eg. 0.06) n = # of times per year interest is compounded t = number of years invested Simplified Compound Interest Equation When interest is only compounded once per year (n=1)‚ the equation
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morning. Her money will earn 5 percent interest‚ compounded annually. After five years‚ her savings account will be worth $5000. Assume she will not make any withdrawals. Given this‚ which one of the following statements is true? A) Samantha deposited more than $5600 this morning. B) The present value of Samantha’s account is $5600 C) Samantha could have deposited less money and still had $5600 in five years if she could have earned 5.5 percent interest. D) Samantha would have had to deposit
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of time when compounded at a given interest rate. Present Value(PV):The value today of a future cash flow or series of cash flows. Compounding : The process of going to future values (FVs) from present values (PVs) is called compounding. Present Value of Multiple Uneven Cash Flow Investment made do not yield constant periodic cash flow Most cases firm receives stream of uneven cash flows Where Ct is Cash flow in period t‚ i is rate of interest n= number of years Example Consider
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common uses for logs in the real world are calculating compound interest‚ calculating population growth or decay‚ and carbon dating. Using logs is a key component when solving for compound interest. Whenever you are calculating the interest on an investment that is compounded continuously‚ a natural exponential function is used. To solve for continuously compounded interest you use the formula A(t) = Pert‚ where P is the principal‚ r is the interest rate‚ and t is the number of years since the investment
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Chapter 6 The Time Value of Money-Annuities and Other Topics 6.1 Annuities 1) You wish to borrow $2‚000 to be repaid in 12 monthly installments of $189.12. The annual interest rate is: A) 24%. B) 8%. C) 18%. D) 12%. 2) If you have $20‚000 in an account earning 8% annually‚ what constant amount could you withdraw each year and have nothing remaining at the end of five years? A) $3‚525.62 B) $5‚008.76 C) $3‚408.88 D) $2‚465. 3) If you invest $750 every six months at 8% compounded semi-annually
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from now‚ at which time it will be redeemed for $1‚000. What interest rate would you earn if you bought this bond at the offer price? a. 4.37% b. 4.86% c. 5.40% d. 6.00% e. 6.60% N 5 PV $747.25 PMT $0 FV $1‚000.00 I/YR 6.00% 4. You sold a car and accepted a note with the following cash flow stream as your payment. What was the effective price you received for the car assuming an interest rate of 6.0%? Years: 0 1 2 3 4 | | | | |
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future. Interest - is the return you receive for investing your money. The interest rate is the basis for a test that any proposed investment must pass. Example: Putting $100 in the bank Earn 6% interest After 1 year $106 $100 $106 Future Values and compound rate Future Value - Amount to which an investment will grow after earning interest. Simple Interest - Interest earned only on the original investment. Compound Interest - Interest earned on interest. - The
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$10‚000 invested now after five years if the annual interest rate is 8 percent. * * a. What would be the future value if the interest rate is a simple interest rate? * * * * * * b. What would be the future value if the interest rate is a compound interest rate? * 2. Find the present value of $7‚000 to be received one year from now assuming a 3 percent annual discount interest rate. Also calculate the present value if the $7‚000
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Instruction to students: 1. This assignment should be completed individually and neatly. 2. Marks will be given to equations and workings. 3. Plagiarism will be treated seriously. ZERO Marks will be given for assignments that have been found wholly or partly involved in plagiarism (no matter these assignments are from the original authors or from the plagiarists). 4. Answer should be corrected to 2 decimal places if any. 5. Words limit: each essay type part cannot be answered by more than
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Syntel Technical Interview Questions: 1.Difference between Virtual and Abstract Method ? 2.What is Runtime Polymorphism ? 3.What is Overiding ? 4.What is the use of a private constructor? 5.What design patterns you used in the project ? 6.What is an interface ? Is there any relation betweem interface and performance ? 7.what is an abstract class ? 8.What is the difference between DataSet and DataReader ? 9.What is CommandBuilder ? 10.What is the Difference between Application and Sesssion
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