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    1 ## DESCRIPTION
    2 ##  Financial mathematics: Effective and nominal rates of interest
    3 ## ENDDESCRIPTION
    4 
    5 ## KEYWORDS('financial mathematics', 'effective and nominal rates')
    6 ## JJH tagged this problem.
    7 
    8 ## DBsubject('Financial Mathematics')
    9 ## DBchapter('Introduction to Interest')
   10 ## DBsection('Effective and Nominal Rates of Interest')
   11 ## Date('5/22/2005')
   12 ## Author('Jeff Holt')
   13 ## Institution('UVA')
   14 ## TitleText1('Financial Mathematics')
   15 ## EditionText1('1')
   16 ## AuthorText1('Holt')
   17 ## Section1('1.3')
   18 ## Problem1()
   19 
   20 DOCUMENT();        # This should be the first executable line in the problem.
   21 
   22 loadMacros("PG.pl",
   23            "PGbasicmacros.pl",
   24            "PGchoicemacros.pl",
   25            "PGanswermacros.pl",
   26 "PGauxiliaryFunctions.pl");
   27 
   28 TEXT(beginproblem());
   29 $showPartialCorrectAnswers = 0;
   30 
   31 $ip = random(7,12,0.1);
   32 $i12 = 0.01*$ip;
   33 $i6 = (1+$i12/12)**(12/6) - 1;
   34 
   35 # Present the text.
   36 
   37 TEXT(EV2(<<EOT));
   38 
   39 Suppose that a savings account pays a nominal interest rate of $ip percent convertible monthly.
   40 What is the equivalent per-2-month interest rate?
   41 
   42 $BR
   43 
   44 Answer = \{ &ans_rule(30) \} percent. $BR
   45 
   46 EOT
   47 
   48 $ans = $i6*100;
   49 ANS(num_cmp($ans, format => '%0.3f', tol => .001) );
   50 
   51 
   52 ENDDOCUMENT();        # This should be the last executable line in the problem.