Compute for the effective interest rate. Payment period = semi-annual Interest period = 25.1% compounded semi-annual Note: Final answer should be in decimal form. Round your answer in 4 decimal places. (Ex. 0.0304; 0.1251)
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- 1. If the stated annual rate of interest compounded annually is 8% then what is the equivalent annual rate compounded daily? Pls show formula used. Final dollar answers should be rounded to two decimal places. Interest rate answers should be rounded to 6 decimal places if expressed as a decimal or 4 decimal places if expressed as a percent. Use timeline if necessary. No excel .Thanks!3. If the effective annual interest rate is 15% then what is the equivalent annual rate compounded quarterly? Pls show formula used. Final dollar answers should be rounded to two decimal places. Interest rate answers should be rounded to 6 decimal places if expressed as a decimal or 4 decimal places if expressed as a percent. Use timeline if necessary. Thanks!A bank quotes you an interest rate of 6.6% per annum with quarterly compounding. What is the equivalent rate with annual compounding? Enter your answer in percentage rounded to two decimals places (e.g, 15.45%)
- To be equivalent to 10.6% compounded quarterly, what must be the nominal rate with: (Do not round intermediate calculations and round your final answers to 2 decimal places.) a. Annual compounding? b. Semiannual compounding? c. Monthly compounding?You currently earn 8% per annum with quarterly compounding. What is the equivalent interest rate with continuous compounding? (enter percentage in decimal form to four decimal places, i.e. eleven and a half percent would be entered as 0.1150) (Required precision: 0.0001 +/- 0.0001)An account pays 7% annual interest compounded monthly. What is the effective interest rate on this account? note: show your answer in percent and to two decimal points. For example, input 12.126% as 12.13
- Which of the following has the most effective annual rate of interest? A. 12.50 % compounded annually B. 11.95% compounded quarterly C. 12.15% compounded semi-annually D. 11.88% compounded monthlyWhat is the Effective Annual Rate (EAR) on a deposit account with a stated Annual Percentage Rate (APR) of 10.6% and monthly compounding? Enter your answer as a percentage rounded to 2 decimal placesCompare the stated annual rate (r) to the effective annual rate (EAR). What relationship exists between compounding frequency and the stated and effective annual rates? Amount of Compounding Initial Stated Annual Frequency, m Deposit Case Deposit ($) Rate, r (%) (times/year) Period (years) A 2,500 6 2 5 B 50,000 12 6 3 C 1,000 5 1 10 D 20,000 16 4 6
- A daily perpetuity of $3.33 is to be valued when the effective annual rate of interest is 8.25%. What is the present value of this perpetuity? (Hint: must use the daily periodic rate - use rate to 8th decimal place, when stated in decimal form).1000 dollars is deposited into an account at the beginning of the year and the value at the end of five years is 1276.30. (a) If the account was subject to a force of interest δ(t) = kt where t is in years, k =? (b) If inflation is 1 percent a year, what is the adjusted effective yearly interest rate?The stated interest rate on your account is 7.2% interest paid quarterly your effective rate of interest API will be? Keep 4 decimal places