For an APR of 10% per year, if interest is compounded quarterly, determine the nominal rate per (a) 6 months, and (b) 2 years.
Q: If $1, 200 grows to $1, 781 in 7 years, determine the interest rate over that period.
A: In the given question we require to calculate the interest rate which grows $1200 into $1781 in 7…
Q: What is the discounted value of $1182.00 paid at the end of every year for 7 years if interest is…
A: rate of interest = 9% per annum compounded monthly converting into effective annual rate Effective…
Q: if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate…
A: Effective rate of interest is rate which is computed after taking into account all the compounding…
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: For an interest rate of 16 percent per year compounded semi-annually, determine the effective…
A: In this we have to determine interest rate for different situation.
Q: What is the effective annual rate of interest if $1000.00 grows to $1400.00 in two years compounded…
A: Introduction Effective annual rate of interest Effective annual interest rate refers to the form…
Q: For an interest rate of 2% per quarter, determine the nominal interest rate per (a) semiannual…
A: The nominal interest rate is the rate of interest without taking compounding and inflation rate into…
Q: Calculate the APR for a 10% per annum nominal rate of interest that is compounded (a) 2 times per…
A: The annual percentage rate (APR) seems to be the annual interest earned by an amount charged to…
Q: Find the nominal rate compounded quarterly of 30 % compounded monthly.
A: Effective annual interest rate(EAR) refers to the real rate of return that we earn on our savings or…
Q: For an interest rate of 3% per quarter, determine the nominal interest rate per (a) semiannual…
A: In order to compute the interest amount, the interest rate is required to be multiplied by the…
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 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: Given an effective annual interest rate of 15%, calculate the correspondie a) annual nominal…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: What is the future werth of a series of equal monthly payments of $2,000 if the series extends over…
A: Future value is the value of an asset after a specific time period.
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: if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate…
A: Nominal Rate = 11.5% Continuous Compounding
Q: An interest of 8% compounded semi annually is how many percent if compounded quarterly?
A: Formula: Effective interest rate=1+rnn-1where,r=nominal raten=number of compounding periods in a…
Q: If the nominal rate is 16.5% per year compounded quarterly, what is the equivalent effective rate of…
A: Since you have asked a question with multiple parts, we will solve the first 3 parts as per policy.…
Q: Find the AV of $3,500 at the end of 10 years at an annual effective interest rate of 4.9% for the…
A: Given Information: Future value is $3500 Annual effective rate for 3 years is 4.9% For remaining…
Q: If the nominal rate is 16.5% per year compounded quarterly, what is the equivalent effective rate of…
A: Annual interest rate (R) = 16.5% Compounding per year (M) = 4 Period of effective rate (N) = 3 Years
Q: est is paid at a rate of 5% per year, compounded quarterly, what is the effective annual rate?
A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…
Q: f the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate…
A: Nominal rate = 11.5% compounded continuously We need to find bi-monthly rate, where there are 24…
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: An account pays interest at a nominal rate of 10% per year. Find the effective annual yield if…
A: In the above question we require to compute the effective annual yield from below details : Nominal…
Q: If the nominal annual interest rate is 15%, what is the effective interest rate when interest is…
A: Given, Nominal interest rate = 15% Compounded frequency = Monthly We need to compute the effective…
Q: 1. For each of the following, calculate the interest rate per compounding period (i): a. 4% per year…
A: A compounding period refers to the time period from when the interest was compounded lastly to the…
Q: An interest rate is quoted as 4% per annum with quarterly compounding. What is the equivalent rate…
A: If R and r are the interest rate with compounding frequency of i and j respectively, in a year then:…
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: If nominal rate is 10 % per year compounded bimonthly, Determine the the following effective…
A: Nominal rate = 10% Compounding = BImonthly
Q: If the interest rate is stated as 2.2% per 6 months compounded continuously, the effective annual…
A: Given: Interest rate = 2.2% Compounding continuosuly.
Q: For an interest rate of 1% per quarter, determine the nominal interest rate per (a) semiannual…
A: The nominal rate of interest is the annual rate which is charged on the securities. The nominal…
Q: If you make quarterly deposits for 3 years into an account that compounds interest at 1% per…
A: The formula of future value of an annuity: FV =A × (1+r)n-1r where A = Annuity amount FV =…
Q: If the rate of interest is 12% compounded annually, find the equivalent rate of interest if it is…
A: Compounding interest is the interest on the initial amount plus interest. As the compounded interest…
Q: e annual in
A: Given information : Effective annual interest rate = 8% Compounding period = 26 weeks
Q: What is the discounted value of $1433.00paid at the end of every six months for 6 years if interest…
A: Present Value of annuity refers to the present value of all the future payments of and series of…
Q: Given the nominal rate of 12% per year compounded continuously, find a) Effective interest rate per…
A: When money is borrowed or lent, the concept of interest charge is an important one. The interest may…
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: If the interest rate is 9% compounded monthly, find the present value of 24 month payments of…
A: Interest rate is 9% Compounded monthly Amount of monthly payment is P1000.00 Time period 24 months…
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 stated as 2.2% per 6 months compounded continuously, the effective annual…
A: Here, Semi Annual Interest Rate is 2.2% Therefore, Annual Nominal Interest Rate is : =2.2% *2 =4.4%…
Q: An interest rate of effective 30% per year .compounded semiannually is nearest to
A: Interest rate per year= 30% Rate of interest when compounded semi annually=?
Q: Determine P & F for the diagram below: Immi For the first seven years, interest is 12% per year…
A: Here, Annual deposits for the first 7 years = 500 Interest rate = 12% compounded monthly Annual…
Q: The maturity value earned if OMR 800 is invested at a rate of 9% compounded quarterly for 2 years is
A: Given: Present value = 800 Interest rate = 9% Years = 2
For an APR of 10% per year, if interest is compounded
quarterly, determine the nominal rate per
(a) 6 months, and (b) 2 years.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- For an interest rate of 12% per year, compounded quarterly, the effective interest per six months is how much?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 bi month
- For an interest rate of 1% per quarter, determine the nominal interest rate per (a) semiannual period, (b) year, and, (c) 2 years.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 quarterIf interest is paid at a rate of 5% per year, compounded quarterly, what is the effective annual rate?
- What is the discounted value of $1433.00paid at the end of every six monthsfor 6 years if interest is 9% per annum compounded quarterly?Calculate the APR for a 10% per annum nominal rate of interest that is compounded (a) 2 times per year, (b)4 times per year, (c) continuously.An interest rate is quoted as 3.75% per year compounded quarterly, what is the effective weeky rate?
- For an interest rate of 16 percent per year compounded semi-annually, determine the effective interest rate,(a) semi-annually, (b) annually, (c) quarterly, (d) monthlyWhat is the discounted value of $844 paid at the end of every three months for 10 years if interest is 9 per annum compounded monthlyIf the rate of interest is 12% compounded annually, find the equivalent rate of interest if it is compounded quarterly.