Q: What is the present value of $8,000 to be received eight periods from today assuming a compound…
A: The present value refers to the value of future cash flows at present. The future value is…
Q: An investment at 15% APR compounded monthly is equivalent to an effective annual interest rate of?
A: EAR formula: EAR=1+RMM-1 WHERE, R=rate of interest M=frequency of compounding
Q: What is the nominal annual interest rate if the effective annual rate is 5.5% and compounding is…
A: In this question the compounding is continuous so the nominal rate needs to be converted to…
Q: Find the interest rates in the situation as: The effective annual interest rate is 11.02% and…
A: The nominal interest rate is the rate of interest before considering the inflation. It is also known…
Q: What is the present value of $6,700 received 14 years from now using a 11% interest or discount…
A: Calculation of Present Value:The Present Value is $1,466.53.Excel Spreadsheet:
Q: If the nominal interest rate is 16.75%, find the effective ual rate with quarterly compounding.…
A: Because you have posted multiple questions, we will answer only the first question and if you want…
Q: What interest rate, compounded monthly, is equivalent to a 10.04% effective interest rate?
A: Effective interest rate : In simple words, the actual rate of return that an individual receives…
Q: You are offered an investment with a quoted annual interest rate of 10% with weekly compounding of…
A: The effective annual interest rate is the actual interest rate that we get if we take the frequency…
Q: A certain nominal annual interest rate has an effective rate of 19.722% when compounded…
A: In order to convert, periodically compounded rate to a continuously compounded rate we use LN…
Q: What is the effective annual interest rate when 12% per year is compounded quarterly? 0.13 or 0.23?
A: In this we have to calculate the effective interest rate annually.
Q: What effective annual interest rate is equivalent to 9% compounded quarterly?
A: In this question we need to compute the effective annual interest rate compounded quarterly.
Q: If the effective annual interest rate is 15% then what is the equivalent annual rate compounded…
A: Effective annual rate (EAR) = 15% Number of compounding per year (m) = 4
Q: simple annual interest rate of 12% compounded semi-annually is an effective yield of
A: Effective annual yield = (1 + i/n)n - 1
Q: For the following amount at the given interest rate compounded continuously, find (a) the future…
A: Given, P = $5300 r = 3.4% = 3.4/100 = 0.034
Q: Find the effective rate of interest corresponding to a nominal rate of 7% per year compounded…
A: This question require us to compute the effective rate of interest.
Q: For an effective interest rate of 16% per annum, what is the equivalent nominal annual rate…
A: The periodic interest rate is multiplied by the number of periods in a year to create the nominal…
Q: What is the nominal rate of interest compounded semi annually which is equal to 8.65% compounded…
A: The effective annual rate of interest is the actual or the real rate of interest paid or received…
Q: Find the nominal interest rate compounded quarterly which could be used instea compounded monthly.…
A: In this we have to find effective interest rate in both cases and find equivalent rate.
Q: Given an effective annual interest rate of 6%, what is the nominal interest rate compounded…
A: Effective rate = [ 1 + ( Annual interest rate / 4 ) ]4 - 1
Q: What effective interest rate per year is equivalent to 19% per year compounded quarterly?
A: Formula for effective rate of interest = (1+i/n)n-1…
Q: Which of the given interest rates and compounding periods would provide the best investment? (a) 10…
A: Given: Interest rate 10 1/2 percent per year, Interest rate 10 1/4 percent per year, Interest rate…
Q: What is the equivalent simple interest (yield) for an investment of 8 % compounded quarterly? Round…
A: Effective Annual Rate The effective annual rate of interest is the actual or the real rate of…
Q: ual interest rate of 12% compounded monthly has an effective yield of?
A: Effective annual yield = (1 + i/n)n - 1
Q: An interest rate is quoted as 4% per annum with quarterly compounding. What is the equivalent rate…
A: If R and r are the interest rate with compounding frequency of i and j respectively, in a year then:…
Q: nual interest rate of 12% compounded quarterly has an effective yield
A: Effective annual yield = (1 + i/n)n - 1
Q: If you are offered a nominal interest rate of 5% per annum, compounded monthly, what is the…
A: In this question we require to compute the effective annual interest rate from following details:…
Q: Which one of the following represents the highest effective interest rate per year? Select one:…
A: Daily compounded interest means that interest is accumulated on a daily basis and is calculated by…
Q: Given an effective annual interest rate of 6%, what is the nominal interest rate compounded…
A: Given: Effective rate is 6%
Q: An annual interest rate of 12% compounded monthly has an effective yield of?Use excel
A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…
Q: An effective annual interest rate of 35% has been determined with continuous compounding. What is…
A: The nominal interest rate refers to the interest rate before taking inflation into account. The…
Q: An interest rate of 10% compounded semianually is equivalent to how many percent compounded…
A: Effective Annual Interest rate(EAR) refers to the real rate of return that we earn on our savings or…
Q: If the interest rate is stated as 2.2% per 6 months compounded continuously, the effective annual…
A: Here, Interest Rate Per 6 Month is 2.2% Therefore, Annual Interest Rate is: =2.2% ×2=4.4%…
Q: e annual in
A: Given information : Effective annual interest rate = 8% Compounding period = 26 weeks
Q: Given an interest rate of 6.5 percent per year, what is the value at date t = 8 of a perpetual…
A: Annual interest rate = 6.5% Annual payment = $ 900
Q: An interest rate of 12% per year, compounded monthly is equivalent to what nominal and effective…
A: The nominal interest rate can be defined as the rate of return on an investment with out any…
Q: If the interest bearing account yielded an effective interest rate of 9% what would nominal rate,…
A: The question is based on the concept calculation of effective interest rate (EIR) of quarterly…
Q: Given the nominal rate of 12% per year compounded continuously, find a) Effective interest rate per…
A: When money is borrowed or lent, the concept of interest charge is an important one. The interest may…
Q: An investment account earns 6.9% Interest, compounded continuously. What is the effective annual…
A: Given: Interest rate is 6.9%
Q: You are offered an investment with a quoted annual interest rate of 6% with quarterly compounding of…
A: Interest rate (r) = 6% Number of compounding per year (m) = 4Tutor Dashboard - Course Hero
Q: he discount factor corresponding to a 3-year continuously compounded interest rate is 0.765667. What…
A: The effective rate is the after considering the impact of compounding and always more than actual…
Q: If the compounding frequency is monthly and the discount factor=0.62026, what is the value of the…
A: Let i(12) denote monthly interest rate Discount Factor = 1/(1+i(12)) 0.62026 = 1/(1+i(12)) i(12) =…
Q: 2. A credit institute quotes you an interest rate of 30% per annum with quarterly compounding. What…
A: Effective annual interest rate(EAR) refers to the real rate of return that we earn on our savings or…
Q: What is the nominal annual interest rate if the effective annual rate is 8.1% and compounding is…
A: Note: As per our guidelines, we can only answer one question at once. Please post other question…
Q: What is the effective annual rate of a savings account with an annual interest rate of 5.9%…
A: Effective annual interest rate is referred as the interest rate which is adjusted for compounding…
Q: If compounding is quarterly, what effective annual interest rate will make the following values of P…
A: Future value of a present value is the value of that amount after taking into account the time value…
A nominal interest rate of 11.333%, continuously compounded, yields an effective annual interest rate of how much?
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- For any given interest rate, ________compounding will yield the highest effective annual rate. a) annual b) monthly c) daily d) continuous e) semiannualAn effective annual interest rate of 35% has been determined with continuous compounding. What is the nominal interest rate that was compounded continuously to get this number?An interest rate of 10% compounded semianually is equivalent to how many percent compounded quarterly?
- If the effective interest rate is 20% per annum, what is the Nominal Rate if it is? a.Compounded Daily (360 Days) b.Compounded Daily (365 Days) c.Compounded Weekly d.Compounded Monthly e.Compounded Quarterly f.Compounded Semi-Annually g.Compounded AnnuallyA nominal interest rate of 12% per annum compounded monthly is equal to what nominal interest compounded semi-annually?The discount factor corresponding to a 3-year continuously compounded interest rate is 0.765667. What is the corresponding continuously compounded interest rate? What is the corresponding quarterly compounded interest rate expressed at an annual rate?
- An annual interest rate of 12% compounded monthly has an effective yield of?a. For an interest rate of 18% per year compounded continuously, calculatethe effective monthly and annual interest rates.b. An investor requires an effective return of at least 15%. What is the minimum annual nominal rate that is acceptable for continuous compounding?If the compounding frequency is monthly and the discount factor=0.62026, what is the value of the corresponding annual interest rate? What is the corresponding continuous compounding annual interest rate if the discount factor remains at 0.62026?
- An annual interest rate of 12% compounded quarterly has an effective yield of?Use excelIf the nominal rate of interest is 10% per annum and there is quarterly compounding, the effective rate of interest will be:Suppose a savings and loan pays a nominal rate of 2.3% on savings deposits. Find the effective annual yield if interest is compounded quarterly.