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An interest rate is quoted as 3.75% per year compounded quarterly, what is the effective daily rate?
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- Define the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future value be larger or smaller if we compound an initial amount more often than annually—for example, every 6 months, or semiannually—holding the stated interest rate constant? Why? What is the future value of $100 after 5 years under 12% annual compounding? Semiannual compounding? Quarterly compounding? Monthly compounding? Daily compounding? What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 12%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily?An interest rate is quoted as 3.75% per year compounded quarterly. What is the effective weekly rate?An interest rate is quoted as 3.75% per year compounded quarterly, what is the effective weeky rate?
- An interest rate is quoted as 3.75% per year compounded quarterly, what is the effective semi-annual rate?If the nominal rate is 16.5% per year compounded quarterly, what is the equivalent effective rate of interest per three yearsIf interest is paid at a rate of 5% per year, compounded quarterly, what is the effective annual rate?
- if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest per bi monthWhat is the effective annual interest rate when 12% per year is compounded quarterly? 0.13 or 0.23?A financial institution quotes a rate of 6.45 percent compounded monthly.What is the effective rate for the year?
- You are told that the nominal rate of interest is 3.46% per quarter year payable monthly. Calculate the equivalent effective annual rate of interest.A nominal interest rate of 12% per annum compounded monthly is equal to what nominal interest compounded semi-annually?For an interest rate of 12% per year, compounded quarterly, the effective interest per six months is how much?
