please show me a solution 6. Which of these gives the lowest effective rate of interest?A. 12.35% compounded annuallyB. 11.90% compounded annuallyC. 12.20% compounded annuallyD. 11.60% compounded annually

The effective rate of interest The effective rate of interest may be a useful concept also called…

Answered: 6. Which of these gives the lowest…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Determine the nominal interest rate compounded continuously corresponding to an effective interest rate of 12% per year. Select one: a. 11.33% b. 11.75% c. 10.68% d. 10.25%
What nominal rate of interest compounded semi-annually can be used instead of 10 % comp. monthly a.) 8.89 % b.) 11.08 % c.) 9.83 % d.) 10.21%
Which of the following compounding rates is equivalent to an effective interest rate of 2.75% p.a.? Select one: a.2.75% p.a. compounding yearly b.2.6% p.a. compounding monthly c.2.6% p.a. compounding daily d.2.7% p.a. compounding six-monthly
Find the equivalent interest rates to the given nominal interest rates. a. Nominal interest rate compounded quarterly that is equivalent to an effective interest rate of 8% . 144.20% 1.94% 36.05% 7.77% b. Nominal interest rate compounded monthly that is equivalent to 3.5% compounded quarterly. 31.78% 2.65% 3.49% 0.29% c. Nominal interest rate compounded monthly that is equivalent to 6% compounded annually. 5.84% 1,214.64% 0.49% 101.22%
When compounded quarterly P12,000 becomes P 20,415.23 after 4 yrs. What is the nominal rate of interest?
2.) What nominal rate compounded monthly is equivalent to 11% effective interest? A.) 10.48% B.) 11.48% C.) 12.48% D.) 13.48%
A certain nominal annual interest rate has an effective rate of 19.722% when compounded continuously. What is its effective rate if compounded bi-monthly? A. 19.87% B. 18.45% C 18% D. 19.41%
3. An interest rate is quoted as being 7.5% compounded quarterly. What is the effective annual interest rate? (ME board).
A rate of 2% per quarter compounded quarterly is closest to what annual compounded interest rate? (a) 2.00% (b) 8.00% (c) 8.24% (d) 24.00%
P500,000 was deposited for a period of 5 yrs. And 6 months and bears on interest of P85,659.25. What is the nominal rate of interest if it is compounded quarterly? What is the actual rate of interest? What is the equivalent nominal rate if it is compounded semi-quarterly?
Method A assumes simple interest over nal fractional periods, while Method B assumes simple discount over nal fractional periods. The annual eective rate of interest is 20%. Find the ratio of the present value of a payment to be made in 1.5 years computed under method A to that computed under Method B
What is the nominal rate of interest compounded semi annually which is equal to 8.65% compounded quarterly in percent?

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6. Which of these gives the lowest effective rate of interest? A. 12.35% compounded annually B. 11.90% compounded annually C. 12.20% compounded annually D. 1160% compounded annually