Q: if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate…
A: Effective rate of interest is rate which is computed after taking into account all the compounding…
Q: A payment of $1200 is due in twelve months. Find the equivalent value at six months. The interest…
A: Given: The payment of $ 1200 is due in 12 months, So the future value will be $ 1,200 Time (t) = 6…
Q: At what nominal rate, compounded quarterly, would $15,000.00 have to be invested to amount to…
A: FV = PV * (1 + i/n)^(n * Years) Where FV = Future Value = $18276.04 PV = Present Value = $15000 i =…
Q: If the nominal rate of interest is 10% per annum and there is quarterly compounding, the effective…
A: The question is based on the concept for calculation of effective interest rate. Formula as :…
Q: For an interest rate of 16 percent per year compounded semi-annually, determine the effective…
A: In this we have to determine interest rate for different situation.
Q: What is the present value of a stream of monthly payments of $500 each over 10 years, if the…
A: Monthly payment (P) = $500 Interest rate = 10% Monthly interest rate (r) = 10%/12 =…
Q: Find the present value that will grow to $23,000 if interest is 8% compounded quarterly for 19…
A: Present value is the value if future cashflow discunted to present date at specified rate. formula:…
Q: If the effective equivalent annual interest rate is 18.1%, and interest is compounded quarterly (1…
A: Information Provided: Effective equivalent annual interest rate = 18.1% Compounding = Quartelry
Q: Calculate the APR for a 10% per annum nominal rate of interest that is compounded (a) 2 times per…
A: The annual percentage rate (APR) seems to be the annual interest earned by an amount charged to…
Q: If the effective interest rate is 20% per annum, what is the Nominal Rate if it is? a.Compounded…
A: The effective annual rate of interest is the actual or the real rate of interest paid or received…
Q: If interest is compounded semi-annually (twice a year), and the interest rate is 3% per 6 month…
A: Present value is the current value of a specified amount you will received in a future date,…
Q: Find the effective annual rate associated with an 8% nominal rate when interest rate is compounded…
A: The effective annual rate is referred to as the true interest rate on any interest-paying investment…
Q: If $500,000 is to grow to $700,000 over a 5-year period, at what annual rate of interest must it be…
A: The present value is the value of the sum received at time 0. It is the current value of the sum…
Q: Find the AV of $3,500 at the end of 10 years at an annual effective interest rate of 4.9% for the…
A: Given Information: Future value is $3500 Annual effective rate for 3 years is 4.9% For remaining…
Q: semi-annual payments of P 8,000 each, starting three years from now. What is the present value of…
A: Present Value of Annuity: It represents the present worth of the future stream of cash flows. It is…
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: If the nominal rate is 16.5% per year compounded quarterly, what is the equivalent effective rate of…
A: Annual interest rate (R) = 16.5% Compounding per year (M) = 4 Period of effective rate (N) = 3 Years
Q: A series of equal quarterly payments of $10,000 for 15 years is equivalent to what future worth…
A: In this we require quarterly interest in each case to get future value.
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 will be the future worth of series of 15 annual $100 payments if the nominal annual interest…
A: An interest rate method in which current interest is computed by multiplying the interest rate by…
Q: An account pays interest at a nominal rate of 10% per year. Find the effective annual yield if…
A: In the above question we require to compute the effective annual yield from below details : Nominal…
Q: If the nominal annual interest rate is 15%, what is the effective interest rate when interest is…
A: Given, Nominal interest rate = 15% Compounded frequency = Monthly We need to compute the effective…
Q: At an interest rate of 10% per year, determine the perpetual equivalent annual cost of: $70,000 now,…
A: The cash flows that are started immediately after the investment and go on for an infinite time…
Q: A series of equal quarterly payments of $25,000for 10 years is equivalent to what future worthamount…
A: Future value (FV) is the value of a current asset at a future date based on an assumed rate of…
Q: At what annual interest rate, compounded annually, must $520 be invested for it to grow to…
A: Initial amount (I) = $520 Future value (FV) = $1,908.44 Period (p) = 10 years Interest rate (r) = ?…
Q: nnual rate for a nominal annual rate of 12% compounded we
A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…
Q: What single amount at the end of the fifth year is equivalent to a uniform annual series of $3,000…
A: Therefore, the future value at the end of 5th year is $27,624.66.
Q: Certain operating savings are expected to be 0 at the end of the first six months, to be $1,000 at…
A: Equivalent uniform amount is the annual cost of operating, maintaining and owning an asset over its…
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: For an interest rate of 2% per month, find (a) the effective rate per quarter, and (b) the effective…
A: The effective interest rate is the rate that is charged by the lender from the borrower for the cost…
Q: Calculate the effective annual rate for 9.4% compounded quarterly.
A: We need to compute the effective annual rate in this question.
Q: A series of equal quarterly payments of $5,000 for 10 years is equivalent to what future lump-sum…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: If nominal rate is 10 % per year compounded bimonthly, Determine the the following effective…
A: Nominal rate = 10% Compounding = BImonthly
Q: Given an interest rate of 12% per year, what is the present value of a perpetual stream of $1,000…
A: Present value of Perpetuity = Periodic amount/ rate of interest
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: 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: Calculate the annual percentage yield of the following: an interest payment of 10% every two…
A: Every two years interest rate = 10%
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: A series of equal quarterly payments of $6,000 for 10 years is equivalent to what present amount at…
A: Information Provided: Quarterly payments = $6000 Years = 10 Interest rate = 12%
Q: If 8% per year is compounded bi-annually, what is the effective annual rate?
A: The effective annual rate is the rate that has an annual compounding frequency. It is calculated to…
Q: An interest rate of effective 30% per year .compounded semiannually is nearest to
A: Interest rate per year= 30% Rate of interest when compounded semi annually=?
Step by step
Solved in 2 steps
- Given 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 quarterIf the nominal rate is 16.5% per year compounded quarterly, what is the equivalent effective rate of interest per three yearsFor an interest rate of 12% per year, compounded quarterly, the effective interest per six months is how much?
- if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest per bi monthAn interest rate is quoted as 3.75% per year compounded quarterly. What is the effective weekly rate?For an interest rate of 16 percent per year compounded semi-annually, determine the effective interest rate,(a) semi-annually, (b) annually, (c) quarterly, (d) monthly
- An interest rate is quoted as 3.75% per year compounded quarterly, what is the effective weeky rate?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.If interest is paid at a rate of 5% per year, compounded quarterly, what is the effective annual rate?
- Calculate the annual percentage yield of the following: an interest payment of 10% every two years.Find the AV of $3,500 at the end of 10 years at an annual effective interest rate of 4.9% for the first 3 years and a nominal annual discount rate of 5.2% compounded quarterly afterwards.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.