Problem
A. Kayla heard that she could triple her money in 20 years if she invested it in a large telecommunications business. What nominal interest rate compounded quarterly does the business offer?
B. Phillip received an excellent interest rate for her loan of $9,500. Calculate the nominal interest rate compounded semi-annually if the loan accumulated to $10,244.84 in 8 years and 6 months.
C. If Nicole wants to earn interest of $3,788.60 on her $9,000.00 savings in 2 years, at what nominal interest rate compounded quarterly do you suggest she invests her money?
D. Kayla wants to double her money in 17 years in an investment fund. What nominal monthly compounding interest rate do you suggest that she look for? (Hint: If money doubles, the ratio of FV to PV is 2.)
E. A bank charges Progress Inc. an interest rate of 4.25% compounded quarterly on its line of credit. If 0.25% was added to the effective interest rate, calculate the new interest rate compounded quarterly.
F. A bank has decided to set its interest rates to compound monthly on all deposits in order to give customers the same benefits as its current offering of 3.25% compounded quarterly. At what value should the monthly compounded interest rate be set?