🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
Finance
1
answer
0
watching
672
views

What factors determine the amount of interest earned on a fixed ​principal?

Choose the correct answer below.

A. The principal or present value.

B. The interest rate and the number of compounding periods.

C. The effective rate.

D. The number of years.

Watch
1
answer
0
watching
672
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Trinidad Tremblay
Trinidad TremblayLv2
7 Apr 2020

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related questions

using excel, determine the future value of an amount deposited today, given an interest rate and the number of time periods. Be sure to use compound interest (interest rate applies to both principal and interest previously earned) versus simple interest (interest rate applies to only the principal).Suppose you currently have $10,000 and plan to purchase a 5-year certificate of deposit (CD) at your local bank that pays 4% interest, compounded annually. How much will you have when the CD matures? How would your answer change if the interest rate were 5%, or 6%, or 20%? Given the interest rate of 4%, how would your answer change if the CD term were 2-years or 3-years, or 10-years?

13. You borrow $95,000 and agree to pay the interest and principal in monthly installments over the next 12 years. The annual interest rate of 12%. What are the monthly payments required to amortize this loan?

A. $1,248

B. $1,336

C. $1,400

D. $3,936

Compound interest can best be described as:

A. Interest earned on the original principal

B. The discount rate

C. Interest earned on interest only

D. Interest earned on interest and interest earned on the original principal

Changing compounding frequency - Using annual, semiannual, and monthly compounding periods for each of the following, (1) calculate the future value if $3,000 is deposited initially, and (2) determine the effective annual rate (EAR).

a. At 10% annual interest for 4 years.

b. At 14% annual interest for 5 years.

c. At 20% annual interest for 7 years.

Weekly leaderboard

Home
Homework Help 3,900,000
Finance 370,000
Start filling in the gaps now
Log in