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View Full Version : Equivalence Calculations Using Effective Interest Rates


csstarter9
Feb 14, 2008, 12:09 PM
4,638 in 10 years at 6% compounded semiannually.


6,500 in 15 years at 8% compounded quarterly.


28,300 in 7 years at 9% compounded monthly

rodandy12
Feb 14, 2008, 01:18 PM
8376.74
21326.7
53011.61

Osano
Mar 11, 2010, 01:12 AM
For P=4638 charging 6% p.a. semi-annually is I= 3%; 10 years have n=10*2=20 interest periods; we have Future value=8376.74;
For P= 6500 charging 8% p.a. quarterly is I=2% ; in 15 years we have n=15*4=60 quarters; Future value=21326.7;
For P= 28300, charging 9% p.a. monthly is I=0.75%; in 7 years we have n= 7*12=84 months; Future value =53011.62