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if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest
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- Define the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future value be larger or smaller if we compound an initial amount more often than annually—for example, every 6 months, or semiannually—holding the stated interest rate constant? Why? What is the future value of $100 after 5 years under 12% annual compounding? Semiannual compounding? Quarterly compounding? Monthly compounding? Daily compounding? What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 12%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily?If the nominal rate is 16.5% per year compounded quarterly, what is the equivalent effective rate of interest per three yearsif the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest per two years?
- An interest rate is quoted as 3.75% per year compounded quarterly, what is the effective weeky rate?Given the nominal rate of 12% per year compounded continuously, find a) Effective interest rate per year b) Effective per two years c) Effective per semi annual d) Effective per month e) Effective per quarterFor an APR of 10% per year, if interest is compounded quarterly, determine the nominal rate per (a) 6 months, and (b) 2 years.
- A nominal interest rate of 12% per annum compounded monthly is equal to what nominal interest compounded semi-annually?If the effective interest rate is 20% per annum, what is the Nominal Rate if it is? 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 AnnuallyIf $14,000 is borrowed for 2 months and $82 is paid, then the annual simple interest rate is ____
- For an interest rate of 2% per month, find (a) the effective rate per quarter, and (b) the effective rate per year.An interest rate is quoted as 3.75% per year compounded quarterly, what is the effective daily rate?You are told that the nominal rate of interest is 3.46% per quarter year payable monthly. Calculate the equivalent effective annual rate of interest.
