Q: You are looking at an investment that has an effective annual rate of 14 percent. (show answers and…
A: Effective annual rate = 14%
Q: A one-year investment yields a return of 15%. The cash returned from the investment, including…
A: We have the following information: A one-year investment yields a return of 15% The cash returned…
Q: How much must you invest at 12% interest, compounding quarterly, in order to see your investment…
A: The amount of investment can be calculated by discounting the future value using the appropriate…
Q: Consider the case where the Annual Percentage Rate (APR) is 15%. If the frequency of compounding is…
A: Annual Percentage rate = 15% Compounding = Quarterly Number of compounding per year = 4
Q: How much is the sum of the present value of the expected return over those periods
A: Cash Flows (Year 1-10) (CF) = $15,000 per year Annual interest rate (r) = 5% Time Period (t) = 10…
Q: What per annum nominal interest rate with interest compounded quarterly would be needed to achieve…
A: Compounding refers to the power of doubling the investment by adding interest .Compounding helps in…
Q: Effective rate? 8% p.a compounded quarterly
A: Effective annual interest rate(EAR) refers to the real rate of return that we earn on our savings or…
Q: a. For an interest rate of 18% per year compounded continuously, calculatethe effective monthly and…
A: We are allowed to answer one question at a time. We’ll answer the first question since the exact one…
Q: A man's investment of P100,000 is expected to yield a regular income of P25,000 per year for 10…
A: Solution:- Benefit cost ratio means the ratio of present value of benefits from a project to present…
Q: Effective rate? 12% p.a compounded quarterly
A: The effective annual rate of interest is the actual or the real rate of interest paid or received…
Q: What is the present value (PV) of an investment that pays $90,000 every year for four years if the…
A: The present value of an annuity is the sum of the discounted value of the periodic cash flows.…
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: How long would it take an amount of $4,000 invested at an interest rate of 21 % per year,…
A: Given information: Present value is $4,000 Future value is $16,000 Interest rate is 21%
Q: How much was initially invested if the value of the investment is at P200,000 after 3 and a half…
A: The present value is the value of the sum received at time 0. It is the current value of the sum…
Q: What nominal rate per quarter is equivalent to an effective rate of 12.7% per year, compounded…
A: Effective Annual Rate: The effective annual rate of interest is the actual or the real rate of…
Q: Suppose that $4000 is invested each quarter, for the next 10 years. What is the future worth if the…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: When will an investment of 4,000.00 double if the effective rate 8% per annum?
A: Solution : given investment P = 4,000 Effective annual rate r = 8% Amount A = 2P We know the…
Q: If the Nominal (APR) rate of return for an investment is 10.15% compounded quarterly, what is the…
A: The effective rate of return refers to the return rate in multi-period compounding. It determines…
Q: An investment offers $6,100 per year for 15 years, with the first payment occurring today. If the…
A: present value of annuity due formula: PVADUE=A×1-11+rnr×1+r where, A=annuity r=rate n=number of…
Q: If the initial investment is $200,000, what would be the nominal annual rate of interest compounded…
A: Interest is the cost of borrowing the money.
Q: What per annum nominal interest rate with interest compounded quarterly would be needed to achieve…
A: The present value function or concept can be used to determine the present value of a future sum or…
Q: With an interest rate of 15 % how long does it take for an invest- ment to quadruple, if the…
A: Future Value formula with periodic compounding i.e. annual, monthly, semi-annual or quarterly…
Q: Calculate the equivalent annual cost for years 1 through infinity of $1,000,000 now and $1,000,000…
A: Formula to calculate the PV is: PV = FV*(1+i)^-n EAC = PV*i
Q: 30 days a month. What is the present value (PV) of the savings if the nominal interest is
A: Present Value is the value of future cash flows at current. As a value increases due to interest,…
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: What is the effective rate equivalent of 15% compounded quarterly?
A: Interest rate (r) = 15% Number of compounding per year (m) = 4
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: What annual rate of return is earned on a $1,000 investment when it grows to $2,700 in eight years?
A: Future value is the value of assets at a future date given a growth rate. This is used for financial…
Q: Effective rate? 20 % p.a compounded quarterly
A: The effective annual rate of interest is the actual or the real rate of interest paid or received…
Q: An investment will pay $10,000 eighteen months from now. What purchase price will provide a rate of…
A: Maturity amount (MV) = $10,000 Interest rate (r) = 7% Period (m) = 18 months
Q: uppose that $5000 is invested each quarter, for the next 20 years. what is the future worth if the…
A: An annuity is a sum of series of payments after every year or after every quarter. An annuity can be…
Q: What is the annual percentage yield (APY) for money invested at an annual rate of (A) 4.37%…
A: APY (annual percentage yield) is used to estimate the potential gain from an investment or the final…
Q: What is the annual percentage yield (APY) for money invested at an annual rate of 4.19% compounded…
A: Given data; interest rate = 4.19% compounded monthly. interest rate = 4.2% compounded quarterly
Q: An investment provides a 1.25% return quarterly, its effective annual rate is
A: Effective Annual Rate = ( 1 + Rate of Interest)^4 -1
Q: The rate of return on an investment of $1500 that doubles in value over a 4-year period, and…
A: We will use the NPER formula in excel =NPER(rate, pmt,pv,-fv,type) where NPER is the number of…
Q: What is the effective annual rate (EAR) for an APR of 10.90 percent compounded quarterly?
A: APR= 10.9% Compounded = Quarterly Find out Effective annual rate (EAR) Then for Quarterly APR=…
Q: What will be the maturity value of P16,000 invested for four (4) years at 15% compounded quarterly?
A: Time value It tells that money received by an individual today has more worth than that of receiving…
Q: What is the annual percentage yield (APY) for money invested at an annual rate of 5% compounded…
A: Annual Percentage Yield (APY):APY is an effective annual return rate that takes compounding…
Q: What is effevtive interest rate per year for an investment of $50 at an interest rate of $5 per…
A: Following is the effective interest rate per year
Q: What is the effective annual rate on an investment that pays an interest rate of 8.25% continuously
A: in this we have to calculate the exponential form and find out effective interest rate.
Q: What is the effective annual interest rate on this investment assuming that interest is compounded…
A: Effective Annual Interest Rate = (1 + (Nominal Interest rate / Number of compounding…
Q: an investment will pay $2,445 two years from now, $3,433 four years from now, and $1,611 five years…
A: The present value of an investment is affected by the inflation rate and growth rate for a specified…
Q: What is the effective annual rate of 11.9 percent compounded continuously?
A: Effective annual rate is the interest rate which is derived at after considering the effect of…
An investment at 15% APR compounded monthly is equivalent to an effective annual interest rate of?
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- If the Nominal (APR) rate of return for an investment is 10.15% compounded quarterly, what is the Effective Annual Rate of return (EAR or EFF)?An investment earns an annual interest rate of 12 percent compounded Semi annually. What is the effective annual rate? Use excel.An investment with quarterly compounding has an effective rate of 6.00%. The nominal rate is:
- Suppose that an investment promises to pay a nominal 9.6 percent annual rate ofinterest. What is the effective annual interest rate on this investment assuming thatinterest is compounded (a) annually? (b) semiannually? (c) quarterly? (d) monthly? (e)daily (365 days)? (f) Weekly?What is the effective annual rate on an investment that pays an interest rate of 8.25% continuously?Which of the following would provide the greatest return on $15,000 if it is invested at a nominal rate of 6% for one year? Group of answer choices quarterly compounding semi-annual compounding annual compounding monthly compounding
- How long would you have to invest $8900 for it to grow to $13,450, assuming an APR (annual percent rate) of 6.2% and assuming quarterly compounding? on excelSuppose that $2700 is invested in an account with an APR of 3.9% compounded continuously. Determine the value of the investment at the end of 5 years. What is the annual percent change (APY) for the account?Effective rate? 20 % p.a compounded quarterly
- What is the effective annual interest rate of an investment that pays 6.5% annual interest, compounded quarterly?If a $31,000 investment grew to $43,005 in 6 1/2 years of quarterly compounding, what effective rate of return was the investment earning?If the initial investment is $200,000, what would be the nominal annual rate of interest compounded quarterly to achieve a payment of $2,000 at the end of each quarter?