Finance Question regarding investing, APR and EPR?- any help is appreciated?

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.

a) How much did Basima invest in this account 8 years ago? (show timeline)

b) If Basima actually contributed those 2 lumpsum amounts at the end of year 7 and 8, what would have been the current value of her account today? (show timeline)

c) Going forward from today, Basima will earn 8% APR for the next 4 years. What is the future value of her investment if her account is currently worth $9,500? (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

Finance Question regarding investing, APR and EPR?- any help is appreciated?cheap loans

OK I don%26#039;t have my Finance Calculator with me right now (if I remember I will comeback and answer it.) But to figure it out all you need to do is

a.) put in FV=$9,500, (I) 6% and (N or time) of 8 years then press PV for present value and it will tell you how much she started with.

time line will look something like this.

1-------2-------3-------4-------

5------6-------7------8

8 will = $9,500 1 will = PV answer from above, 2-7 will be the interest on the PV from 1

b.) To find this answer on the time line 1-6 will be the same

for 7 put in the interest for that year plus add her payment of $2,300 which will not get any interest because it is at the end of the year. Then calculate the interest on that for year 8 and add to it the deposit of $3,200 w/ no interest because its at year end. That will give you the balance at year 8 (or today)

c.) is easy just put in PV=9,500,I=8%, N=4 then press FV for the answer.

For e.) I am not to sure I do now that you need to change your calulator from Intrest Compounded daily to compunded monthly.

I hope this helps

OK here you go

a.) = $5885.48

b.) = $15,141.87

c.)= $13,068.83

all of these number are intrest compounded monthly. So at 6% that would be .50 monthly or 6/12

I hope this is right it has been a while