Find the nominal interest rate compounded quarterly which could be used instea compounded monthly. What is the corresponding effective interest rate then?
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A:
Q: An investment pays you 9% interest, compounded quarterly. What is the periodic rate of interest?…
A: Using excel effective rate of interest function
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Q: What interest rate, compounded monthly, is equivalent to a 10.04% effective interest rate?
A: Effective interest rate : In simple words, the actual rate of return that an individual receives…
Q: What is the monthly interest rate if an annual rate is 13.4%? The monthly interest rate is %. (Type…
A: Given: Annual rate = 13.4%
Q: What is the nominal rate if the effective rate is15.32% compounded semi-annually?
A: Effective annual rate (EAR) refers to a real interest rate which an investor is expect from his…
Q: Determine the nominal rate for and interest rate of 1.5% per month compounded quarterly?
A: Nominal rate is the rate calculated without taking compounding into account
Q: What interest rate compounded monthly is equivalent to a 10% effective rate?
A: Given, Effective rate=10% Compounding frequency=12
Q: If the nominal annual interest rate is 15%, what is the effective interest rate when interest is…
A: In this question We require to calculate the effective interest rate from below details: Nominal…
Q: investment, what nominal rate of interest, compounded semi-annually must you earn?
A: Information Provided: Principal = $26,000 Years = 13 Semiannual payments to be received = $1700
Q: a. What is the interest rate per month that is equivalent to 4.26% p.a.?
A: Interest rate is the the rate of interest of due period as a sum of the money borrowed.
Q: Find the nominal rate compounded monthly which is equivalent to 12% compounded quarterly. What is…
A: Interest rate = 12% compounded quarterly We need to find the nominal rate compounded monthly which…
Q: what simple interest rate is equivalent to 1% compounded quarterly
A: Simple interest rate is the rate which does not compound means under this rate there is no concept…
Q: The effective interest rate per compounding period is equal to the nominal interest rate per year…
A: The given statement is the effective interest rate per compounding period is equal to the normal…
Q: What effective annual interest rate to the nominal interest rate of 6% compounded monthly?
A: Interest rate (r) = 6% Number of compounding per year (m) = 12
Q: d. Using information from (la) only, what quarterly compounded interest rate should the bank quote…
A: The effective annual interest rate (EAR) is defined as the annual growth rate that takes compounding…
Q: By comparing their APYS, decide which is better: an investment at 4.26% compounded monthly, an…
A: Answer: Calculation of APY: When ‘r’ is 4.26% compounded monthly,
Q: If the interest rate per day is 0.014%, then what is the annual rate?
A: Interest rate:An interest rate is a percentage on the principal amount at which a lender gives money…
Q: What is the nominal rate of interest compounded semi annually which is equal to 8.81% compounded…
A: Interest rate (APR) = 8.81% Compounding per year (M) = 4
Q: payment period be reduced? What is the effective annual [ Select ] interest rate per year? If the…
A: As per Bartleby answering guidelines and policy answered only the first 3 sub parts. Kindly post the…
Q: Find the nominal rate compounded monthly equivalent to the rate of interest of 8 % compounded…
A: Compound interest also called interest on interest. It is the addition of interest in the principal…
Q: Find the nominal rate compounded semi annually which is equivalent to 20% compounded quarterly. What…
A: Nominal Rate = 20% Compounded Quarterly Number of compounding periods = 4
Q: Find the effective annual interest rate r of the given nominal annual interest rate. Round your…
A: Effective interest rate is interest rate considering the impact of compounding on interest rate.
Q: The annual interest rate is 12%. Find (a) the semi-annual rate, (b) the quarterly rate, (c) the…
A: semi-annual rate is the rate that is compounded twice a year (i,e) for every six months is called…
Q: For an effective interest rate of 16% per annum, what is the equivalent nominal annual rate…
A: The periodic interest rate is multiplied by the number of periods in a year to create the nominal…
Q: If the nominal or headline rate of interest is 24%, what is the effective annual rate i.…
A: The nominal rate of interest = 24% The effective rate is compounded semi-annually means 2 times a…
Q: Monthly interest rate?
A: Monthly interest rate is the interest charged on the unpaid balance of credit card.
Q: What effective interest rate per year is equivalent to 19% per year compounded quarterly?
A: Formula for effective rate of interest = (1+i/n)n-1…
Q: What is the nominal annual interest rate compounded continu- ously for an annual percentage yield of…
A: Annual percentage Yield(r) = 3.5% Year(n) =1 Nominal annual interest rate = e^(r*n) - 1
Q: If you are offered a nominal interest rate of 5% per annum, compounded monthly, what is the…
A: In this question we require to compute the effective annual interest rate from following details:…
Q: Find the nominal annual rate of interest compounded quarterly
A: Nominal rate of interest is provided by Banks. It is a rate that considers inflation. Compounding…
Q: An effective annual interest rate of 35% has been determined with continuous compounding. What is…
A: The nominal interest rate refers to the interest rate before taking inflation into account. The…
Q: Express the term Effective interest rate per payment period, quarterly payments with weekly…
A: The term Effective interest rate per payment period is the interest rate that is computed for…
Q: An interest rate of 10% compounded semianually is equivalent to how many percent compounded…
A: Effective Annual Interest rate(EAR) refers to the real rate of return that we earn on our savings or…
Q: In terms of an effective annual interest rate, how can the interest payment be rewritten?
A: An APR (Annual Percentage Rate) is the nominal rate or the stated rate of interest in any financial…
Q: Derive an equation to find the end-of-year future sum F that is equivalent to a series of n…
A: F=B1+R1+B1+R2+B1+R3+⋯+B1+RN=B×1+RN-1R×1+R
Q: How would I calculate the nominal interest rate that is used in the effective annual rate equation…
A: Total number of periods = 12 Loan payment is 15000 Monthly payment is 1387.5 To Find: Nominal…
Q: What is the uniform annual equivalent if the interest rate is 7% per year?
A: Uniform Annual Equivalent Payment: It is one of the methods used in capital budgeting for the…
Q: For compounding more frequently than annual, the effective interest rate Select one: a. equal to the…
A: Effective annual rate is calculated for a nominal rate which is compounded more than once in a year,…
Q: he discount factor corresponding to a 3-year continuously compounded interest rate is 0.765667. What…
A: The effective rate is the after considering the impact of compounding and always more than actual…
Q: If the compounding frequency is monthly and the discount factor=0.62026, what is the value of the…
A: Let i(12) denote monthly interest rate Discount Factor = 1/(1+i(12)) 0.62026 = 1/(1+i(12)) i(12) =…
Q: What interest rate compounded monthly is equivalent to an interest rate of 14% compounded quarterly?
A: While estimating the future value or present value of particular investment, an investor would be…
Q: What is the effective annual rate of a savings account with an annual interest rate of 5.9%…
A: Effective annual interest rate is referred as the interest rate which is adjusted for compounding…
Q: What nominal interest rate compounded quarterly is equivalent to j∞=j∞= 7%?
A: Nominal Interest Rate: This percentage increase in the amount of money you pay the lender in…
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- (1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest rate is 10%, compounded semiannually? (2) What is the PV of the same stream? (3) Is the stream an annuity? (4) An important rule is that you should never show a nominal rate on a time line or use it in calculations unless what condition holds? (Hint: Think of annual compounding, when INOM = EFF% = IPER.) What would be wrong with your answers to parts (1) and (2) if you used the nominal rate of 10% rather than the periodic rate, INOM/2 = 10%/2 = 5%?If the effective annual interest rate is 8%, what is the nominal annual rate if compounding is bi-monthly?If the compounding frequency is monthly and the discount factor=0.62026, what is the value of the corresponding annual interest rate? What is the corresponding continuous compounding annual interest rate if the discount factor remains at 0.62026?
- Find the nominal rate compounded semi annually which is equivalent to 20% compounded quarterly. What is the corresponding effective rate?Find the nominal rate compounded monthly which is equivalent to 12% compounded quarterly. What is the corresponding effective rate?A nominal interest rate of 11.333%, continuously compounded, yields an effective annual interest rate of how much?
- if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest per two years?What interest rate, compounded monthly, is equivalent to a 10.04% effective interest rate?The discount factor corresponding to a 3-year continuously compounded interest rate is 0.765667. What is the corresponding continuously compounded interest rate? What is the corresponding quarterly compounded interest rate expressed at an annual rate?
- If the nominal rate of interest is 10% per annum and there is quarterly compounding, the effective rate of interest will be:An interest rate is quoted as 3.75% per year compounded quarterly, what is the effective daily rate?What rate compounded monthly is equivalent to simple interest rate of 12 1/3% for 3 years?