3. Calculate the APR for a 6% per annum nominal rate of interest that is compounded (a) 4 times per year. (b) 12 times per year, (c) continuously.
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- Calculate the APR for a 10% per annum nominal rate of interest that is compounded (a) 2 times per year, (b)4 times per year, (c) continuously.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 continuouslyThe principal P is invested at the interest rate of r/year for t years. (Use a 365-day year.) P = $110,000, r = 4%, t = 7 1 4 , compounded monthly.Determine i, the compound interest rate.
- Using an effective rate of interest of 8% per annum, calculate the CONVEXITY of the following series of payments: £400 payable after 4 years, £400 payable after 12 years, and £450 payable after 17 years.Find the accumulated amount A if the principal P is invested at the interest rate of r/year for t years. (Use a 365-day year. Round your answer to the nearest cent.) P = $43,000, r = 9 3/4 % t = 9, compounded quarterly A = $An interest rate is quoted as 4% per annum with quarterly compounding. What is the equivalent rate with (a) annual compounding (b) monthly compounding (c) continuous compounding
- In a certain account providing an interest rate of r compounded quarterly, P2, 500 is deposited every end of the quarter. What value of r will make the future value of the account P5, 200 in six months?Complete the table below giving the principal PP that must be invested at interest rate 5 % compounded weekly to obtain a balance of AA = $ 150000 in tt yearsGiven the nominal rate of 12% per year compounded continuously, find a) Effective interest rate per year b) Effective per two years c) Effective per semi annual d) Effective per month e) Effective per quarter
- Identify the compounding period for the following interest statements: (a) 3% per year; (b) 10% per year compounded quarterly; (c) nominal 7.2% per year compounded daily; (d) effective 3.4% per quarter compounded continuously; and (e) 0.012% per day compounded hourly.Suppose $15,000 is invested in an account with an APR of 4.5%. If the interest is compounded annually, how much interest is earned over the first 6 years? If the interest is compounded monthly, how much interest is earned over the first 6 years?Write and exponential expression for the value: (a) $70, compounded continuously at the interest rate of 4% for 3 years (b) $690, compounded continuously at the rate of 5% for 2 years ( These interest rates are nominal rates per annum.)