What monthly compounded rate of interest did it earn

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Reference no: EM132751449

Questions -

Q1. Nick invested $6,000 for 3 years at an interest rate of 2.5% compounded semi-annually and then at an interest rate of 3% compounded quarterly for 3.5 years. How much interest did the investment earn over the 6.5 years?

Q2. Maddy was scheduled to make payments of $5,000 in 1 ½ years from now, and $7,500 in 4 ½ years from now. She is proposing an alternative arrangement that would involve a payment in 6 months from now, followed by a payment of $11,500 in 3 ½ years from now. How much would the payment in 6 months from now need to be in order for the two streams to be economically equivalent? Assume that money can earn 3% compounded semi-annually. Hint: A timeline would be helpful.

Q3. Cameron invested $11,500 in a 3 year compound interest GIC with a maturity value of $13,761.83. What monthly compounded rate of interest did it earn?

Reference no: EM132751449

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