If i= 14.8% per year, compounded monthly. What is the effective interest rate per semiannual? (ABET, SO1) Select one: Oa. 15.85% Ob. 7.63% O c. 7.4% O d. 1.23%
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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?Which one of the following represents the highest effective interest rate per year? Select one: O a. 10.5% per year, compounded semiannually Ob. 10.4% per year, compounded daily O c. 10% per year, compounded quarterly O d. 10% per year, compounded monthly O e. 9.8% per year, compounded continuouslyYou currently earn 8% per annum with quarterly compounding. What is the equivalent interest rate with continuous compounding? (enter percentage in decimal form to four decimal places, i.e. eleven and a half percent would be entered as 0.1150) (Required precision: 0.0001 +/- 0.0001)
- How much is P1200 worth at the end of 1 year if the interestvrate of 5.5% is compunded quarterly?When compounded quarterly P12,000 becomes P 20,415.23 after 4 yrs. What is the nominal rate of interest?An investment earns an annual interest rate of 12 percent compounded quarterly. What is the effective annual rate?A. 3.00%.B. 12.00%. C. 12.55% Use excel
- Using Table 11-1, compute the amount of compound interest (in $) earned in 1 year and the annual percentage yield (APY) for the investment. (Round your answers to two decimal places.) Principal NominalRate (%) InterestCompounded Compound InterestEarned in 1 Year Annual PercentageYield (APY) $6,000 12 semiannually $ %If the nominal or headline rate of interest is 24%, what is the effective annual ratei. semi-annuallyii. quarterly Answer both.An interest rate of 2% per quarter, compounded continuously, is closest to an effection semi annual rate of: a)2.02% per semiannual period b). 4.00% per semiannual period c). 4.08% per semiannual period d). 2.00% per semiannual period e).5.0% per semiannual period
- A fixed income instrument with a stated annual interest rate of 18% and offers monthly compounding has an effective annual rate (EAR) closest to:A. 18.00%.B. 19.56%. C. 20.12% Use excelIf an investment increases from P40,000 to P50,612 in 3 years, what is the nominal rate of interest converted semiannually? (rate semiannual)7.If $1000 is deposited at 12.5% p.a. for one year, what is the effective annual interest rate if interest is compounded quarterly? Select one: a. 13.10% b. 12.50% c. 13.03% d. 13.05%
