If 8% per year is compounded bi-annually, what is the effective annual rate?

Q: In how many years is required for ₱2,000.00 to increase by ₱3,000.00 if interest at 12% compounded…

A: Given information: Present Value ₱2,000.00 Future value ₱5,000.00 Interest rate 6.00%

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: 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: A series of year end payment extending over ten years are as follows 5000 for the first year 10000…

A: N = 10 Payments: Year Payment 1 5000.00 2 10000.00 3 20000.00 4 20000.00 Interest rate…

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: year-end bonus of $25,000 will generate how much money at the beginning of each month for the next…

A: Year End Bonus=$25000 interest rate =6.06 monthly interest =6.06/12=0.505 monthly interest =0.505%0…

Q: If $19,000 is invested at 3% compounded monthly, what is the amount after 4 years?

A: FUTURE VALUE is the value of current cashflow at the future date compounded at the specified rate.…

Q: What size monthly payments should occur when $10.000 is borrowed at 6% per year compounded monthly…

A: When the interest on interest is charged on monthly basis, it is known as monthly compounding. It…

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: What nominal rate compounded semi-annually yields the same amount as 20 % compounded quarterly?

A: Given rate (r) = 20% quarterly compounded (Compounding frequency = 4) Let i = Nominal rate…

Q: If 39600 dollars is invested at an interest rate of 9 percent per year, find the value of the…

A: Given: PV (Present Value ) =$39600Interest rate(i) =9% per yearNo. of years (n) =5 Abbreviation:FV…

Q: assuming a rate of 10% annually, find the FV of 1,000 after 5 yearas

A: The formula for the calculation of Future value is as follows: Future value=Present…

Q: If $500,000 is to grow to $700,000 over a 5-year period, at what annual rate of interest must it be…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: What is the equivalent present value of the following series of payments: $10,000 the first year,…

A: Calculate the equivalent present value as follows:

Q: A 15% compounded semi-annually has an equivalent rate of 4.9395%, how many times does it pay every…

A: Equivalent interest rate is that rate which is calculated after adjusting the nominal rate for the…

Q: How many years are required for P 1,000 to increase to P 2,000 if invested at 9% per year compounded…

A: Future value is obtained by compounding the present value using the appropriate rate of interest.

Q: What is the future value of $800 deposited each year for six years, compounded annually at 10…

A: RATE  10% NPER (n)  6 PMT 800

Q: How much is the present sum is equivalent to a series of P1000 annual end-of year payments, if a…

A: Annual payment (P) = P 1000 Interest rate (r) = 6% Number of annual payments (n) = 10

Q: What is the present value of annual payments of $2,000 for 12 years at 1 percent?

A: Present Value of Annuity is that amount which was invested by the investor today for receiving the…

Q: If $17,500 is invested at an interest rate of 10% per year, find the value of the investment at the…

A: Present Value (PV)= $17,500 Interest Rate (r)= 10% per year Time period (n)= 5 years Future Value at…

Q: If the initial investment is $200,000, what would be the nominal annual rate of interest compounded…

A: Interest is the cost of borrowing the money.

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: If $19,000 is invested at 5% compounded quarterly, what is the amount after 9 years? The amount…

A: Given: Present value = $19,000 Interest rate = 5% Years = 9

Q: At 8% compounded annually, how long will it take 750 to double?

A: Given information: Present value is $750 Interest rate is 8% Future value is double the present…

Q: What is the rate compounded semi-annually if ₱123,000 accumulates to ₱321,000 in 9 years and 2…

A: Rate of Interest - Rate of Interest is the rate at which interest will be calculated.   Formula for…

Q: What is the discounted value of ​$844 paid at the end of every three months for 10 years if…

A: Computation:

Q: How much must be deposited at the beginning of each year in an account that pays 7%, compounded…

A: Here, The future value is FV i.e $28,000 The rate of interest is r i.e. 7% The maturity is n i.e 10…

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: At an interest rate of 10% per year, determine the perpetual equivalent annual cost of: $70,000 now,…

A: The cash flows that are started immediately after the investment and go on for an infinite time…

Q: For an APR of 10% per year, if interest is compounded quarterly, determine the nominal rate per (a)…

A: a.

Q: If $12,000 is invested at an interest rate of 10% per year, find the amount of the investment at the…

A: Given:

Q: Calculate the annual equivalent value at the end of each year at i=17% per year?

A: Annual equivalent value can be calculated by multiplying Present Value factor @17% with cash flows…

Q: How much money must be invested at 16% annually, compounded quarterly, to obtain $1,400 in three…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: What single amount at the end of the fifth year is equivalent to a uniform annual series of $3,000…

A: Therefore, the future value at the end of 5th year is $27,624.66.

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: 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: If 10700 dollars is invested at an interest rate of 5 percent per year, find the value of the…

A: Compounding is a technique through which future amount of present value is calculated by using…

Q: Calculate if $10,000 is invested at interest rate of 12% per annum, what is the amount after 3 years…

A: The provided information are: Present value (PV) = $10,000 Interest rate (r) = 12% = 0.12 Number 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: If 5,000 shall accumulate for 10 years at 8% compounded quarterly, then what is the compound…

A: Given: Present value = 5000 Number of years = 10 The interest rate is: i'=in4=i44=0.084=0.02

Q: A year-end bonus of $23,000 will generate how much money at the beginning of each month for the next…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: What is the future value if the amount invested is 10,000 at 10% compounded quarterly for 5 years?…

A: Solution Given Present value 10000 Rate of interest 10% Compounding Quarterly…