Recent

  • Show all results for ""
Gr 11 Math Ch 9: Nominal and Effective Interest Rates
10 Questions
0 Views

Gr 11 Math Ch 9: Nominal and Effective Interest Rates

Created by
@GreatestTiger

Questions and Answers

What is the formula for simple interest?

  • A = P(1 + i)
  • A = P(1 - in)
  • A = P(1 + in) (correct)
  • A = P(1 + in)^2

    • What is the formula for compound depreciation?

  • A = P(1 - in)
  • A = P(1 + i)^n
  • A = P(1 + in)
  • A = P(1 - i)^n (correct)

    • What is the formula for effective interest rate?

  • 1 + i_effective = (1 + i_nominal/m)^m (correct)
  • 1 + i_effective = (1 + i_nominal/m)^(m-1)
  • 1 + i_effective = m(1 + i_nominal/m)
  • 1 + i_effective = (1 - i_nominal/m)^m

    • What is the formula for nominal interest rate?

    <p>i_nominal = m((1 + i_effective)^(1/m) - 1)</p> Signup and view all the answers

    Which of the following is not a type of interest or depreciation?

    <p>Compound Appreciation</p> Signup and view all the answers

    What is the value of A after 3 years if the principal amount is $100, the interest rate is 10% per year, and the interest is compounded annually?

    <p>$133.10</p> Signup and view all the answers

    If a machine depreciates at a rate of 15% per year, what is its value after 2 years if the initial value is $500?

    <p>$306.25</p> Signup and view all the answers

    If the effective interest rate is 12%, and the nominal interest rate is 11% compounded quarterly, what is the value of m?

    <p>4</p> Signup and view all the answers

    If the nominal interest rate is 12% compounded monthly, what is the effective interest rate?

    <p>12.68%</p> Signup and view all the answers

    A company purchases a machine for $10,000, which depreciates at a rate of 10% per year. What is the total value of the machine after 5 years if the depreciation is compounded annually?

    <p>$6,477.55</p> Signup and view all the answers

    More Quizzes Like This

    Understanding Audits in Finance and Accounting
    5 questions

    Understanding Audits in Finance and Accounting

    ExuberantBixbite avatar
    ExuberantBixbite
    Finance: Investment Appraisal with Accounting Rate of Return (ARR)
    6 questions

    Finance: Investment Appraisal with Accounting Rate of Return (ARR)

    SmittenHyperbole avatar
    SmittenHyperbole
    Finance and Accounting: Credit Terms and Capital Structure
    17 questions

    Finance and Accounting: Credit Terms and Capital Structure

    LuckiestNihonium avatar
    LuckiestNihonium
    Introduction to Business Mathematics
    5 questions

    Introduction to Business Mathematics

    HonoredSyntax avatar
    HonoredSyntax
    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser