A friend tells you she has saved for 7 years and has a present sum of $10,000, which earned at the rate of 8% per year, compounded quarterly. (a) Determine the equivalent amount she had to start with 7 years ago. (b) Write the EFFECT function to find the effective rate per year.
What will be an ideal response?
(a) P = 10,000(P/F,2%,28)
= 10,000(0.5744)
= $5744
(b) = EFFECT(8%,4) displays 8.243% per year
Trades & Technology
You might also like to view...
The five leading milk-producing states produce more milk each year than all the other states combined
Indicate whether the statement is true or false
Trades & Technology
Reliability is the percentage of time a customer receives service versus not receiving service over a one year time period.
Answer the following statement true (T) or false (F)
Trades & Technology
A pending code (DTC) will cause the MIL to illuminate
Indicate whether the statement is true or false
Trades & Technology
Water lilies exemplify the floater type of water garden plant
Indicate whether the statement is true or false
Trades & Technology