APR, EAR and ERP question about investment?

Question Details: Basima currently has $9,500 at an investment bank. She began investing 8 years ago at 6% Annual Percentage Rate (APR) or quoted rate. About 2 years ago, Basima began her full-time employment and could have contributed a lumpsum amount of $2,300 at the end of year 7 and another lumpsum amount of $3,200 at the end of year 8.
d) If Basima wished to double her current account value $9,500 within the next 9 years, what rate of APR from the bank would satisfy her goal? (show timeline)

e) Another local investment bank has offered her an interest rate of 10% APR compounded monthly. Calculate the Effective Annual Rate (EAR) and the Effective Periodic Rate (EPR) if Basima were to invest bi-weekly (every 2 weeks).

EAR is [1+(APR/n)]^n where n= number of times compounded a year.
EAR= [1+.(1/12)]^12= 10.4713%
EPR is [1+EAR]^(1/26)-1=0.383756%

Tags

　　Investment Company 　　Investment Calculator 　　Investment Bank 　　Investment Advice 　　Investment Account 　　Invest Money 　　Invest in Gold 　　Invest Fund 　　Income Fund

Related information

Question about investment?

The value you see is what the account is worth. What you are entitled to when you leave the company is your vested value. Look on the statement for your vested value. Companies either use a clif...

How to prevent investment fraud and Internal Control to prevent CEO from scamming investors?

The only sure way is for investors to be allowed to send in external, independent auditors on a frequent basis.

...

Tax advice for stock options trading account?

Taxes are assessed on your gains. The sale of a stock or option determines that a taxable envent has occurred, and the profit is taxed. Except if it is in a tax advantaged account such as an ...

I received a check supposedly from Impact Investment Group for almost $5,000. Is this a scam?!?

You received a $5,000 check you weren't expecting from some company you've never heard of. It'll be a scam. Sooner or later someone will contact you to ask you to wire that money...

Am I calculating interest rate/return on investment correctly?

Your calculations are correct BUT I would caution you that stocks can be quite volatile like the example listed. It may have a huge gain but then have an even larger loss. Make sure to diversify am...

I want to know about investment in stocks and shares?

You can do it cheaper at Halifax through their SHAREBUILDER scheme (拢1.50 to buy shares, 拢5 to sell.... and it also allows you to buy in fractions of shares you can't quite afford instead of w...

Negative (loss) Long Term Gain Distribution reduces brokerage cash account?

It sounds like you're mixing up debits and credits when looking at your online statements ... go back and look at your paper statements which should clarify the situation. It is impossible ...

This is an accounting question is Land held for investment considered a current asset or a PP & L?

Need some additional facts here, which I presume -- 1) this is a for profit enterprise 2) the enterprise is in the business of buying and selling land as an investment Based on this -- the l...