18. If the single payment amount factor for a period of 5 years is 1.33822, what is the nominal rate of interest? • A. 6.00% • B. 7.00% • C. 6.92% • D.7.92% 19. What is the effective rate of interest if it is compounded semi-annually of problem no. 18? • A. 5.00% B. 7.24% • C. 6.92% • D. 6.09% 20. What is the equivalent nominal rate if it is compounded quarterly of problem no. 18? • A. 6.12% • B. 4.24% C. 5.43% • D.5.87%

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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Solve all three subparts early. 

18. If the single payment amount factor for a period of 5 years is 1.33822, what is the
nominal rate of interest?
• A. 6.00%
. В. 7.00%
• C. 6.92%
• D.7.92%
19. What is the effective rate of interest if it is compounded semi-annually of
problem no. 18?
• A. 5.00%
. В. 7.24%
• C. 6.92%
• D. 6.09%
20. What is the equivalent nominal rate if it is compounded quarterly of problem
no. 18?
• A. 6.12%
• B. 4.24%
• C. 5.43%
• D. 5.87%
Transcribed Image Text:18. If the single payment amount factor for a period of 5 years is 1.33822, what is the nominal rate of interest? • A. 6.00% . В. 7.00% • C. 6.92% • D.7.92% 19. What is the effective rate of interest if it is compounded semi-annually of problem no. 18? • A. 5.00% . В. 7.24% • C. 6.92% • D. 6.09% 20. What is the equivalent nominal rate if it is compounded quarterly of problem no. 18? • A. 6.12% • B. 4.24% • C. 5.43% • D. 5.87%
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