Assume an effective compound interest rate i = 8% per annum. Compute the following equivalent rates. In each case, enter your answer as a percentage. a) The nominal interest rate payable semi-annually 数字 Enter an answer correct to 4 decimal places. % b) The effective interest rate payable quarterly 数字 % Enter an answer correct to 2 decimal places. c) The effective rate of discount per annum 数字 Enter an answer correct to 2 decimal places. % d) The nominal rate of discount payable monthly |数字 % Enter an answer correct to 4 decimal places.

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 8MC: Define the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future...
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Assume an effective compound interest rate i = 8% per annum. Compute the following equivalent rates.
In each case, enter your answer as a percentage.
a) The nominal interest rate payable semi-annually
数字
Enter an answer correct to 4 decimal places.
%
b) The effective interest rate payable quarterly
数字
Enter an answer correct to 2 decimal places.
%
c) The effective rate of discount per annum
数字
Enter an answer correct to 2 decimal places.
%
d) The nominal rate of discount payable monthly
数字
Enter an answer correct to 4 decimal places.
%
Transcribed Image Text:Assume an effective compound interest rate i = 8% per annum. Compute the following equivalent rates. In each case, enter your answer as a percentage. a) The nominal interest rate payable semi-annually 数字 Enter an answer correct to 4 decimal places. % b) The effective interest rate payable quarterly 数字 Enter an answer correct to 2 decimal places. % c) The effective rate of discount per annum 数字 Enter an answer correct to 2 decimal places. % d) The nominal rate of discount payable monthly 数字 Enter an answer correct to 4 decimal places. %
You are paid £1,500 annually for 8 years, with the first payment due in one year and the last payment due in 8 years.
What is the present value of all these payments using an interest rate of 1%?
£ 数字
Enter an answer correct to 2 decimal places.
Transcribed Image Text:You are paid £1,500 annually for 8 years, with the first payment due in one year and the last payment due in 8 years. What is the present value of all these payments using an interest rate of 1%? £ 数字 Enter an answer correct to 2 decimal places.
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