Effective interest rate Effective interest rate Effective interest rate Effective interest rate Effective interest rate (month) Nominal Rate (bi- month) (quarter) (semi annmal) (year) 8% compounded semi annually 8% compounded monthly 8% compounded quarterly 8% compounded bi monthly 8% compounded continously

Effective interest rate Effective interest rate Effective interest rate Effective interest rate Effective interest rate (month) Nominal Rate (bi- month) (quarter) (semi annmal) (year) 8% compounded semi annually 8% compounded monthly 8% compounded quarterly 8% compounded bi monthly 8% compounded continously

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 15MC: Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual...

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Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
Show complete solution If the account earns an interest rate of 24% compounded monthly, Find the effective rate of interest per? a. Compounded Daily (360 Days) b. Compounded Daily (365 Days) c. Compounded Weekly d. Compounded Monthly e. Compounded Quarterly f. Compounded Semi-Annually g. Compounded Annually
Identify each of the following interest rate statements as either nominal or effective.a. 4% per yearb. 6% per year compounded annuallyc. 10% per quarterd. 8% per year compounded monthlye. 1% per monthf. 1% per month compounded monthlyg. 0.1% per day compounded hourlyh. effective 1.5% per month compounded weeklyi. 12% per year compounded semiannuallyj. 1% per month compounded continuously
Identify the compounding period for the following interest statements: (a) 3% per year; (b) 10% per year compounded quarterly; (c) nominal 7.2% per year compounded daily; (d) effective 3.4% per quarter compounded continuously; and (e) 0.012% per day compounded hourly.
1. What balance will be in an account at the end of 10 years, if € 3 500 is deposited today and the account earns 3,5% annual interest, compounded a) annually? b) semi-annually? c) quarterly? d) monthly? using TVM functions mannully Principal Interest rate Time period Compounding frequency Total number of compounding periods Interest per period Total Interest earned Final balance = FV Final balance = FV (EUR) (as a decimal) (number of years) (times per year) (as a decimal) (EUR) (EUR) (EUR) 3,500 0.035 10 1 10 0.0350 1,437.10 4,937.10 4,937.10 3,500 0.035 10 2 20 0.0175 1,451.72 4,951.72 4,951.72 3,500 0.035 10 4 40 0.0088 1,459.18 4,959.18 4,959.18 3,500 0.035 10 12 120 0.0029 1,464.21 4,964.21 4,964.21
Using Table 11-1, compute the amount of compound interest (in $) earned in 1 year and the annual percentage yield (APY) for the investment. (Round your answers to two decimal places.) Principal NominalRate (%) InterestCompounded Compound InterestEarned in 1 Year Annual PercentageYield (APY) $6,000 12 semiannually $ %
Compute the rate (in %) for the loan. Round answers to the nearest tenth of a percent; use ordinary interest when time is stated in days. Principal: 24,000 Rate (%): Time:60 days Interest: $384
1. What balance will be in an account at the end of 10 years, if € 3 500 is deposited today and the account earns 3,5% annual interest, compounded a) monthly? using TVM functions mannully Principal Interest rate Time period Compounding frequency Total number of compounding periods Interest per period Total Interest earned Final balance = FV Final balance = FV (EUR) (as a decimal) (number of years) (times per year) (as a decimal) (EUR) (EUR) (EUR) 3,500 0.035 10 1 10 0.0350 1,437.10 4,937.10 4,937.10 3,500 0.035 10 2 20 0.0175 1,451.72 4,951.72 4,951.72 3,500 0.035 10 4 40 0.0088 1,459.18 4,959.18 4,959.18 3,500 0.035 10 12 120 0.0029 1,464.21 4,964.21 4,964.21
What amount will be accumulated by Php 1,520 in 10 semi annuals at 6% compounded bi-monthly? What effective annual interest rate corresponds to the following situations? a. nominal interest rate of 4% compounded bi-monthly b. nominal interest rate of 5% compounded quarterly c. nominal interest rate of 6% compounded continuously
Determine if the interest rates below are nominal or effective (or effective annual). 5% per year compounded semiannually 18% per year compounded monthly 1.5% per month compounded monthly 6% per six months compounded annually 4% per month compounded quarterly 3% per quarter compounded monthly 12% per year compounded continuously 1% per month compounded continuously 1% per week compounded monthly 6% per year compounded weekly
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)
Calculate the present value (principal) and the compound interest (in $). Use Table 11-2. Round your answers to the nearest cent. CompoundAmount Term ofInvestment NominalRate (%) InterestCompounded PresentValue CompoundInterest $28,500 18 months 4 semiannually $ $