How do I find the periodic interest rate for the following? Compute the periodic interest rate, as a decimal, given a nominal interest rate and compounding period.Roundyour answers to four decimal places.a. 13.63%, monthlyPeriodic Interest Rate (as a decimal) =b. 6.97%, weeklyPeriodic Interest Rate (as a decimal)c. 5.77%, dailyPeriodic Interest Rate (as a decimal)

Interest: Interest is the amount of interest paid on the issue price of the notes by the issuer at…

Compute the periodic interest rate, as a decimal, given a nominal interest rate and compounding period. your answers to four decimal places. Round a. 13.63%, monthly Periodic Interest Rate (as a decimal) b. 6.97%, weekly Periodic Interest Rate (as a decimal) c. 5.77%, daily

Compute the periodic interest rate, as a decimal, given a nominal interest rate and compounding period. your answers to four decimal places. Round a. 13.63%, monthly Periodic Interest Rate (as a decimal) b. 6.97%, weekly Periodic Interest Rate (as a decimal) c. 5.77%, daily

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter17: Accounting For Notes And Interest

Section: Chapter Questions

Problem 2SEA

See similar textbooks

Related questions

Q: Treasury bills are currently paying 6 percent and the inflation rate is 3.10 percent. What is the…

A: Nominal interest rate = 6% Inflation rate = 3.10%

Q: Suppose you make quarterly deposits into an account that earns 6% annual interest compounded…

A: Interest rate (r) = 6% Number of compounding per year (m) = 12

Q: The face value of an eight-month, 4.5% note dated February 28, 2006, is $738.85. Determine each of…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: 4. Compute the effective annual interest rate in each of the following situations a. 5.75% nominal…

A: a. Convert 5.75% compounded quarterly to its equivalent interest rate for annual interval. Here, 'R'…

Q: One bank advertises a nominal rate of 7.36% compounded semiannually. A second bank advertises a…

A: Effective interest rate is the rate that takes into account the effect of compounding. The overall…

Q: Find the effective rate of the compound interest rate or investment. (Round your answer to two…

A: The effective rate of interest is calculated as: = [(1 + i)^number of periods] - 1

Q: Explain the meaning of a 20% annual percentage rate (APR) quotedby the credit c.ird company? And how…

A: Answer: Annual percentage rate (APR) applies to the interest rate charged annually to borrowers and…

Q: A lending institution charges interest at the rate of 3.5% per quarter, a. What is the nominal…

A: Interest rate per quarter = 3.5% a. What is the nominal interest rate? Nominal interest rate…

Q: Answer the following questions. (Round interest rate to 0 decimal places, e.g. 7%.) (1) If the note…

A: Given information Interest expenses = $511 Notes payable ( p ) = $4700 Duration (n) = 3 months…

Q: On a 365-day basis, using a trade credit terms of 2/10, net 30, and payment is made on the twentieth…

A: In case of trade credit, 2% discount is being given if payment is made till 10th day.

Q: Suppose you deposit $4,000 into a savings account that earns 5.4% APR compounded monthly. Find the…

A: The real interest that an investor earns on the investment and a borrower pays on the loan after…

Q: What is the equivalent rate of interest (in %) for a discount rate of 7.9% for 77 days? Round your…

A: Interest rate is referred as the percentage of the principal charged through the lender regarding…

Q: You are told the effective interest rate on an account is 2.1%, if the interest is compounded…

A: Formulas:

Q: Find the interest rates earned on each of the following. Round each answer to two decimal places.…

A: Formulas:

Q: nterest rate of 10% pa with semi-annual compounding. Note that another way of stating this rate is…

A: In this we need to calculate the effective interest rate.

Q: credit card offers a borrowing rate of 18%, compounded daily. What is effective rate? (as a decimal)

A: The effective rate is the annual rate of interest paid or received after the compounding effect. It…

Q: Presented below are data on three promissory notes. Determine the missing amounts. (Round answers…

A: a) Interest amount = Principal*Interest rate*60/360 b) Annual interest rate =…

Q: If you know the nominal interest rate 3% Per Quarter A) Find the Nominal interest rate. B) Find the…

A: Here, Nominal Interest Rate is 3% per Quarter

Q: The effective interest rate when the nominal interest rate of 24% compounded monthly is given by O…

A: Nominal interest rate is the interest rate which is not adjusted for inflation and compounding…

Q: Use the exact interest method (365 days) and the ordinary interest method (360 days) to compare the…

A: In this question we need to compute the Exact interest and Ordinary interest. Given: Principal =…

Q: Complete the following without using Table 12.1. (Round the "Total amount" and "Total interest" to…

A: The future value represents the value of an investment or money at a future specified date assuming…

Q: Suppose a savings account pays 7% annual interest with interest compounded daily (assume there are…

A: Daily compounding Nominal rate= 7% Number of compounding periods = 365 Deposit = 2578 N = 3285 days…

Q: If Treasury bills are currently paying 6 percent and the inflation rate is 2.3 percent, what is the…

A: Data given: Treasury bill rate = 6% Inflation rate= 2.3% Required: i) Approximate real rate ii)…

Q: The bank statement opposite shows transactions over a one-month period for a savings account that…

A: Interest on savings account is calculated on daily balance in the account.

Q: Use the compound interest formula to solve. (Round your answers to the nearest cent.) Time Period…

A: Future value = Present value * (1+rate)^n

Q: a $1,400 deposit when $1,800 is paid back in one year. (Round your answer to 2 decimal places.)

A: Interest earned is the amount of interest gained from assets that pay the bearer a regular series of…

Q: An interest pays 1% interest rate, calculate the nominal rate of interest compounded weekly?

A: Interest rate can be defined as the percentage rate at which the interest over the investment or…

Q: Compute the periodic interest rate, as a decimal, given a nominal interest rate and compounding…

A: Periodic Rate = Nominal Rate / No. of periods

Q: An interest pays 1% interest rate, calculate the nominal rate of interest compounded weekly? 52% 32%…

A: A compounding is the interest charged on interest. When any investment is made for certain years,…

Q: Treasury bills are currently paying 6 percent and the inflation rate is 2.6 percent. (Round the…

A: Approximate and extract real rate can be calculated by using these equations. Approximate real rate…

Q: (a) The size of the quarterly payment is S. (Round the final answer to the nearest cent as needed.…

A: Amortization Schedule: It represents a table consisting of the periodic loan payments, interest…

Q: What rate of interest (in %) compounded quarterly will yield an effective interest rate of 8.6%?…

A: Effective Annual Rate: The effective annual rate of interest is the actual or the real rate of…

Q: Find the simple interest. Assume the rate is an annual rate. Assume 360 days in a year. Principal…

A: Solution:- Interest means the earnings made by depositing an amount somewhere for a period of time.…

Q: Complete the following without using Table12.1. (Round the "Total amount" and "Total interest" to…

A: Given: Amount = $1,500 Interest rate = 8% Years = 1

Q: Solve by using compound table: (Round the "Total Amount" and "Total Interest" to the nearest cent.)…

A: Total Amount = P 1+rnnt where P = Principal r = Rate of Interest n = number of compounding per year…

Q: Complete the table below by computing the effective rate of interest. Use 4 decimal places 1. HOW…

A: Because you have posted multiple questions, we will answer the first question, for the remaining…

Q: Calculating Interest Using 360 days as the denominator, calculate interest for the following notes…

A: Interest is calculated on the original principal amount. interest is the cost of money which…

Q: ompute the interest accrued on each of the following notes Jse 360 as the denominator when…

A: Solution: Maker Principal Interest rate Term (Days) Accrued Interest Maple 18000 10% 120 600…

Q: 1.If the nominal rate of interest is 48% compounded bi-monthly, find the rate of interest per…

A: Note : As per the guidelines, only first question will be answered. Given information : Nominal…

Q: Identify the following interest rates as nominal or effective. Rate 1: 1.5% per quarter Rate 2: 1.5%…

A: Effective interest rate is computed by adjusting the nominal interest rate for the number of…

Q: What is the amount of interest owed if $7,850 is borrowed at 6.55% for 1 year? Round to two decimal…

A: Interest is the charge paid to the money lender for borrowing something in monetary terms. It is…

Q: Compute the periodic interest rate, as a decimal, given a nominal interest rate and compounding…

A: Periodic interest rate: It is the rate charged on a loan or realized on investment for each…

Q: Calculate and compare the effective rates of interest for saving accounts paying: (a.) a nominal…

A: Formula for computation of effective rates is as follows:Effective rates=1+rmn-1where,r=Interest…

Q: A credit card quotes a rate as 21.5% compounded monthly. a) What is the effective annual interest…

A: This question has two parts : In part (a) we need to compute the effective annual interest rate…

Q: 1. What balance will be in an account at the end of 10 years, if € 3 500 is deposited today and…

A: Future value refers to the value of an asset on a specified date in the future. It can be calculated…

Q: Assume an effective compound interest rate i = 3% per annum. Compute the following equivalent rates.…

A: Effective annual rate is the interest actually earned on the investment or paid on the loan, as a…

Q: Suppose à priñčipal Generate a table of the corresponding effective interest rates. (ruond to 3…

A: Effective interest rate is the interest rate considering the impact of the compounding on the…

Question

How do I find the periodic interest rate for the following?

Compute the periodic interest rate, as a decimal, given a nominal interest rate and compounding period.
Round
your answers to four decimal places.
a. 13.63%, monthly
Periodic Interest Rate (as a decimal) =
b. 6.97%, weekly
Periodic Interest Rate (as a decimal)
c. 5.77%, daily
Periodic Interest Rate (as a decimal)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Definition

VIEW

Step 2: Answer

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

If the annual interest rate is 8%, what is the daily interest rate that would be used as the "r" in the time value of money equation? Hint: the equation uses the decimal equivalent of the percent Enter your answer to four decimal places.
Using the appropriate interest table, compute the present values of the following periodic amounts due at the end of the designated periods. $53,490 receivable at the end of each period for 8 periods compounded at 11%. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
If the annual interest rate is 7%, what is the monthly interest rate that would be used as the "r" in the time value of money equation? Hint: the equation uses the decimal equivalent of the percent Enter your answer to four decimal places.
Based on the data presented above, what is the times interest earned ratio? (Round to two decimal places.)
Find the equivalent interest rates to the given nominal interest rates. a. Nominal interest rate compounded quarterly that is equivalent to an effective interest rate of 8.5% % Round to two decimal places b. Nominal interest rate compounded monthly that is equivalent to 7.5% compounded quarterly % Round to two decimal places c. Nominal interest rate compounded quarterly that is equivalent to 8% compounded annually % Round to two decimal places
Determine the effective rate of interest of the following nominal rates. a. nominal rates (Compounded annually) b. nominal rates (Compounded quarterly) c. nominal rates (Compounded continuously) nominal rate = 0.14
What would you expect the nominal rate of interest to be if the real rate is 2.75% and the expected inflation rate is 13.5%? Use two decimal places – show work.
Suppose the spot rate and the 90-day forward rate on the Brazilian real are 3.3054 and 3.3263, respectively. If the three-month interest rate on dollars is .27%, what do you think is the three-month interest rate on the Brazilian real? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
An interest rate obtained by dividing the nominal rate per year by the number of compounding periods in that year isa. A nominal interest rateb. An effective interest ratec. An effective interest rate only if the compounding period is monthlyd. Either (b) or (c)
The real interest rate is 5% and the inflation rate is 3%. What is the nominal interest rate? Round your answer to 2 decimal places
The first-year one-year interest rate is 1.14%, the second-year (also one-year) interest rate is 2.33%, the third-year (also one-year) interest rate is 2.84%, and the fourth-year (also one-year) interest rate is 3.21%. What is the four-year total holding interest rate if you reversed the sequence of rates (highest in year 1, lowest in year 4)? ANSWER TO 4 DECIMAL POINTS PLEASE
Suppose you invest $1,500 in an account paying 6% interest per year. How much of this balance corresponds to interest on interest earned in the last (7th) period? (Dollar figures should be approximated to the nearest cent of a dollar, while rates should be expressed in percentage terms without using the "%" symbol and approximated to the nearest second decimal place.)