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[DOC File]SIMPLE INTEREST AND DISCOUNT
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5) Bank A pays 5% compounded daily, while Bank B pays 5.12% compounded monthly. Which bank pays more? Explain. 6) EZ Photo Company needs five copying machines in 2 1/2 years for a total cost of $15,000. How much money should be deposited now to pay for these machines, if the interest rate is 8% compounded semiannually?
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[DOC File]Simple Interest - University Of Maryland
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If a bond pays 12.0% interest per year, compounded daily, will the bond’s value increase by exactly 12.0% after one year? Why or why not? If a bond pays 12.0% interest per year, compounded annually, will the bond grow at the rate of 12.0% per year? Why or why not? Compute the AER if you’re not sure.
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[DOC File]Savings, Loans, and Interest Rate
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2. Create a new spreadsheet as shown below. Enter the formulas shown in A3 and B3. Then extend these columns (Calculate-->Fill down) to cover 20 years. To simplify the size of the spreadsheet, we assume that savings and interest on your bank account are deposited only once each year. In reality, interest may be added (“compounded”) daily!
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[DOC File]Simple Interest - University Of Maryland
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Calculate the annual effective rate on a loan that charges 9.3% interest per year, compounded daily. Assume that the loan is paid back in one lump sum at the end of the year. An account that quotes 10.0% interest per year, compounded daily, will yield slightly more than 10.0% interest per year due to the frequent compounding.
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[DOC File]Module 4: Compound Interest and the Number e
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Module 4: Compound Interest and the Number e. Recall that an exponential function is a function of the form where a is the initial value and where r is the percent rate of change per units of x. EXAMPLE: Suppose you deposit $1000 in a savings account that gives 5% simple annual interest.
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[DOC File]Simple and Compound Interest Worksheet
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In problems1-3, compare the amount you have if the money were compounded annually versus quarterly. Write out and solve 2 equations per problem . $5,000 at 10% for 5 years. $2,000 at 12% for 3 years. $1,000 at 14% for 30 years. In problems 4-6, compare the amount of money you have if the investment is compounded annually versus daily.
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Interest calculator compounded daily