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An interest rate of 6% compounded semiannually is equivalent to what rate compounded monthly?
Step by step
Solved in 3 steps
- 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?A nominal interest rate of 12% per annum compounded monthly is equal to what nominal interest compounded semi-annually?if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest per bi month
- If interest is paid at a rate of 5% per year, compounded quarterly, what is the effective annual rate?If the stated annual rate of interest compounded semi-annually is 12.5% then what is the equivalent monthly rate compounded monthly?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%
- If the rate of interest is 12% compounded annually, find the equivalent rate of interest if it is compounded quarterly.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 years
- Determine the annual rate of interest compounded daily that is equivalent to 9% per annum compounded monthlyAn interest rate is quoted as 3.75% per year compounded quarterly, what is the effective daily rate?What nominal annual discount rate compounded semiannually is equivalent to a nominal rate of interest of 12% compounded monthly?
