Solve both correctly. Don't do only one as these are short answer. I will rate. 1. An interest rate of 37% per year,compounded monthly, is nearest to . peryear (Enter the value in number four decimals(exp: 0.1395))2. An interest rate of 46% per year,compounded continuously, is closest to aneffective per quarter equal to...(Enter theanswers as number with four decimals (Exp0.4563))

Effective annual rate is the real rate that is actually earned on an investment by the investors…

Answered: 1. An interest rate of 37% per year,…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 7P

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Similar questions

1000 dollars is deposited into an account at the beginning of the year and the value at the end of five years is 1276.30. (a) If the account was subject to a force of interest δ(t) = kt where t is in years, k =? (b) If inflation is 1 percent a year, what is the adjusted effective yearly interest rate?
Suppose you invest $1,500 in an account paying 6% interest per year. How much of this balance corresponds to interest on interest earned in the last (7th) period? (Dollar figures should be approximated to the nearest cent of a dollar, while rates should be expressed in percentage terms without using the "%" symbol and approximated to the nearest second decimal place.)
If a principal of P3840 earns interest of P204 in 3 years and 5 months, what is the simple interest rate in effect? In 2 decimal places in percent
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1. What balance will be in an account at the end of 10 years, if € 3 500 is deposited today and the account earns 3,5% annual interest, compounded a) annually? b) semi-annually? c) quarterly? d) monthly? using TVM functions mannully Principal Interest rate Time period Compounding frequency Total number of compounding periods Interest per period Total Interest earned Final balance = FV Final balance = FV (EUR) (as a decimal) (number of years) (times per year) (as a decimal) (EUR) (EUR) (EUR) 3,500 0.035 10 1 10 0.0350 1,437.10 4,937.10 4,937.10 3,500 0.035 10 2 20 0.0175 1,451.72 4,951.72 4,951.72 3,500 0.035 10 4 40 0.0088 1,459.18 4,959.18 4,959.18 3,500 0.035 10 12 120 0.0029 1,464.21 4,964.21 4,964.21
If 16% pa is an annual percentage rate (APR) compounding every quarter, which of the following is NOT correct? All percentages are given to 5 decimal places. a. Effective quarterly rate is 4.00000% per quarter. b.Continuously compounded semi-annual rate is 7.84414% per half year. c. Continuously compounded quarterly rate is 3.92207% per quarter. d. Effective monthly rate is 1.84756% per month. e. The annual percentage rate (APR) compounding every month is 15.79128%.
1.If the nominal rate of interest is 48% compounded bi-monthly, find the rate of interest per period? 2.If the rate of interest is 8% compounded quarterly, find the nominal rate of interest.
Identify each of the following interest rate statements as either nominal or effective.a. 4% per yearb. 6% per year compounded annuallyc. 10% per quarterd. 8% per year compounded monthlye. 1% per monthf. 1% per month compounded monthlyg. 0.1% per day compounded hourlyh. effective 1.5% per month compounded weeklyi. 12% per year compounded semiannuallyj. 1% per month compounded continuously
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An investment of $1831.00 earned interest semi-annually. If the balance after 5.5 years was $2304.74, what nominal annual rate compounded semi-annually was charged? Round final answer to four decimal places.
What amount will be accumulated by Php 1,520 in 10 semi annuals at 6% compounded bi-monthly? What effective annual interest rate corresponds to the following situations? a. nominal interest rate of 4% compounded bi-monthly b. nominal interest rate of 5% compounded quarterly c. nominal interest rate of 6% compounded continuously
An interest rate of 2% per quarter, compounded continuously, is closest to an effection semi annual rate of: a)2.02% per semiannual period b). 4.00% per semiannual period c). 4.08% per semiannual period d). 2.00% per semiannual period e).5.0% per semiannual period

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