Q: What is the effective annual rate (EAR) if the stated rate is 8 percent and compounding occurs…
A: In this question we need to calculate the effective annual rate (EAR).
Q: If the nominal rate of interest is 10% per annum and there is quarterly compounding, the effective…
A: The question is based on the concept for calculation of effective interest rate. Formula as :…
Q: Find the nominal rate that if converted quarterly could be used instead for 15% compounded…
A: Nominal rate with semiannual compounding = 0.15 or 15% Number of semiannual compounding in a year =…
Q: if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: 1. Find the effective rate (APR) for a nominal rate at (a) 7% p.a. compounded annually. (b) 8% p.a.…
A: Because you have asked a question with multiple parts , we will solve the first 3 parts for you as…
Q: Effective rate? 8% p.a compounded quarterly
A: Effective annual interest rate(EAR) refers to the real rate of return that we earn on our savings or…
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: What is the simple interest on ₱ 30,000 for six months at a simple interest rate of 12% . What is…
A: Simple interest is interest on investment without any compounding. Compound interest is the interest…
Q: Effective rate? 12% p.a compounded quarterly
A: The effective annual rate of interest is the actual or the real rate of interest paid or received…
Q: Given the rate per compounding period, find r, the annual rate 0.25% per month
A: P =R / M Here P = Rate per compounding period R= Annual rate M=Times amount compounded
Q: For an interest rate of 12% per year, compounded quarterly, the effective interest per six months is…
A: APR = 12% Number of compounding per year (m) = 4
Q: nd the nominal rate which if converted semi - annually could be used instead of 12% compounded bi -…
A: In this we have to find out the effective rate for both options and than find equivalent rate.
Q: What effective rate is the equivalent to 15% compounded annually?
A: Effective annual Interest can be computed as follows. EAR = (1 + i/n)n – 1 Here i = Annual rate of…
Q: What rate compounded quarterly is equivalent to 10% simple discount rate for 2 years?
A: Compounding interest is the additional interest to the principal sum of the amount.
Q: tive rate? 4 % p.a compounded quarterly
A: Effective rate is the rate after considering the effect of the compounding.
Q: Calculate the annual effective rate equivalent to a nominal rate of 8.84% compounded quarterly.…
A: Given: Nominal rate for quarterly compounding = 8.84% Annual effective rate = (1 + rq/ n)n -1 where…
Q: Estimate the effective annual rate (EAR) for a continuously compounded annual nominal rate of 9.00%.
A: Given, The nominal rate is 9.00% The formula of EAR (continuous 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 $6000 is invested in an account. After three years, the account has $7500 in it. If money is…
A: Question is based on the concept of Time value
Q: "If the nominal rate is 12% compounded semi-annually, the annual percentage rate is higher than the…
A: The annual percentage rate is is nominal rate of interest I.e. 12%
Q: if you have a semi annual rate, to get the bi-weekly rate, why is it divided by 26
A: Semi annual rate is rate for 6 months
Q: If the APR is 10% and compounding is monthly, then the Effective Annual Rate is:
A: Using the Effective function in excel
Q: What is the EAR corresponding to a nominal rate of compounded semiannually? Compounded 10%…
A: EAR is effective annual rate i.e. equivalent interest rate for interest rate which are compounded…
Q: If $5500 is deposited at the end of each quarter in an account that earns 7% compounded quarterly,…
A: Given data; deposit amount = $5500 rate of interest = 7% Future value of annuity = $90,000
Q: What is the effective rate equivalent of 15% compounded quarterly?
A: Interest rate (r) = 15% Number of compounding per year (m) = 4
Q: Problem: Find the nominal rate, which if converted quarterly could be used instead of 15 %…
A: Nominal interest rate: The nominal interest rate is the rate of interest prior inflation is taken…
Q: An effective rate of 29,61% corresponds to a nominal rate, compounded weekly, of?
A: Effective rate means the actual return from a saving account or returns from any investment when the…
Q: What is the effective annual rate (EAR) of 8% per year, compounded monthly? Select one: O a. 8.29% O…
A: given, r=8% m = 12 ( monthly compounding)
Q: Red Company is coming up with an investment that pays 8% interest compounded semiannually. What is…
A: Effective Annual rate refers to the rate earned on savings account where compounding is done over a…
Q: What is the effective annual rate for an APR of 15.70 percent compounded monthly?
A: The effective annual Rate will be computed according to the formula..... i=(1+rm)m−1.. Where rm…
Q: What is the effective rate equivalent to 17% compounded quarterly?
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
Q: Find the nominal rate which if converted quarterly could be used instead of 12% compounded monthly.
A: Effective annual rate (EAR) refers to a real interest rate which an investor is expect from his…
Q: Calculate the effective rate of 6% compounded quarterly
A: Interest rate = 6% 1 year = 4 quarter Annual Effective rate = (1+r/n)^n -1 r = interest n= years…
Q: An account pays 2.9% compounded continuously. What is the effective quarterly rate?
A: The continuously compounded rate, r = 2.9%So the impact of continuous compounding on an amount, A…
Q: what is the equivalent percent of 20% compounded quarterly if converted to compounded monthly.
A: Interest rate (r) = 20% Number of compounding per year (n) = 4 Effective annual interest rate =…
Q: A financial institution quotes a rate of 6.45 percent compounded monthly.What is the effective rate…
A: The real interest that an investor earns on the investment and a borrower pays on loan after…
Q: An interest rate of nominal 10% per year, compounded weekly, is
A: The nominal rate is the rate of interest an investment generates without taking the compounding…
Q: Find the uniform annual amount equivalent to a uniform gradient series in which the payment for the…
A: The annual equivalent amount is the equivalent amount of cash flow an cash flow with an unequal…
Q: If 8% per year is compounded bi-annually, what is the effective annual rate?
A: The effective annual rate is the rate that has an annual compounding frequency. It is calculated to…
Q: If the interest rate is 12% compounded quarterly, what is the interest rate per conversion period?
A: The conversion period for the interest rate is the period in which the interest rate gets…
Q: In general, which rate yields the larger amount in one year? (A) 13% compounded semi-annually (B)…
A: The rate that would yield a higher value can be calculated by comparing the effective annual rate of…
Q: What is the effective annual rate of 11.9 percent compounded continuously?
A: Effective annual rate is the interest rate which is derived at after considering the effect of…
Q: What is the effective annual rate of 6%, compounded monthly? O 6.12% O 6.06% O 6.14% O 6.17% O 6.24%
A: Effective Annual rate The effective annual interest rate is that real return that is paid on the…
Q: Determine how much is in each account on the basis of the indicated compounding after the specified…
A: As per the guidelines we are allowed to solve the first three parts only The account value can be…
3 decimal places final answer......thanks
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- Find the nominal rate that if converted quarterly could be used instead for 15% compounded semi-annually?find the nominal rate which is converted quarterly could be used instead of 11.88% compounded monthly.Find the nominal rate compounded monthly which is equivalent to 12% compounded quarterly. What is the corresponding effective rate?
- What is the effective annual rate or EAR of 8% compounded monthly? a. 6.14% b. 8.38% c. 8.30% d. 6.47%What are the effective annual rates of the following: a) 12% APR compounded monthly? b) 16% APR compounded annually? c) 6% APR compounded daily?What is the effective annual rate (EAR) for an annual percentage rate (APR) or a nominal annual rate of 12%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily? Compounded hourly?
- if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest per bi month"If the nominal rate is 12% compounded semi-annually, the annual percentage rate is higher than the effective annual rate." TRUE OR FALSEWhat is the effective annualized rate compounded quarterly that is equivalent to 12.000% per annum compounded continuously?