Lesson 26 Supplementary Exercises
A. Complete the table by computing the interest rate per period and total number of conversion periods.
\begin{tabular}{|c|c|c|c|}
\hline \begin{tabular}{c}
Nominal Rate \\
\( \mathbf{i}^{(\mathbf{m})} \)
\end{tabular} & \begin{tabular}{c}
Interest \\
Compounded
\end{tabular} & \begin{tabular}{c}
Frequency of \\
conversion \( (\mathbf{m}) \)
\end{tabular} & \begin{tabular}{c}
Interest rate for each \\
conversion period
\end{tabular} \\
\hline \( 10 \% \) & Semi-annually & \( (1) \) & \( (2) \) \\
\hline\( (3) \) & Quarterly & \( (4) \) & 0.015 \\
\hline \( 12 \% \) & Monthly & & \( (5) \) \\
\hline
\end{tabular}
B. Complete the table by computing for the maturity values, compound interests and present values.
\begin{tabular}{|c|c|c|c|c|c|c|c|}
\hline \begin{tabular}{c}
Present \\
Value
\end{tabular} & \begin{tabular}{c}
Nominal \\
Rate \( i^{(m i)} \)
\end{tabular} & \begin{tabular}{c}
Interest \\
compounded
\end{tabular} & \begin{tabular}{c}
Interest \\
rate \\
per \\
period
\end{tabular} & \begin{tabular}{c}
Time \\
in \\
Years
\end{tabular} & \begin{tabular}{c}
Total \\
number of \\
conversions
\end{tabular} & \begin{tabular}{c}
Compound \\
Interest
\end{tabular} & \begin{tabular}{c}
Maturity \\
value
\end{tabular} \\
\hline 20,000 & \( 6 \% \) & \begin{tabular}{c}
Semi- \\
annually
\end{tabular} & \( (6) \) & 8 & \( (7) \) & \( (8) \) & \( (9) \) \\
\hline\( (10) \) & \( 10 \% \) & quarterly & \( 2.5 \% \) & 6 & \( (12) \) & & 100,000 \\
\hline
\end{tabular}
