Q: What nominal annual discount rate compounded semiannually is equivalent to a nominal rate of…
A: Nominal Interest Rate: When the market inflation is not taken into consideration while computing the…
Q: If the effective annual interest rate is 14%, what is the nominal annual rate if compounding is…
A: The Bi-monthly compounding means the interest is compounded in every two month and the interest…
Q: Which of the following has the most effective annual rate of interest? 12.15% compounded…
A: Effective Annual Rate of Interest: An effective annual interest rate is the true return on a savings…
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: Determine the nominal rate of interest compounded quarterly which is equivalent to 6.3% compounded…
A: The nominal interest rate refers to the periodic interest rate multiplied by the number of periods…
Q: What would be the annual percentage yield (APY) for a savings account that earned $174 on a balance…
A: In the above question we require to compute the annual percentage yield (APY) from below details:…
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: 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: What is the effective annual interest rate when 12% per year is compounded quarterly? 0.13 or 0.23?
A: In this we have to calculate the effective interest rate annually.
Q: If the effective annual interest rate is 15% then what is the equivalent annual rate compounded…
A: Effective annual rate (EAR) = 15% Number of compounding per year (m) = 4
Q: If the stated annual rate of interest compounded semi-annually is 12.5% then what is the equivalent…
A: Interest rate (APR) = 12.5% Number of compounding per year (m) = 2
Q: tive rate? 4 % p.a compounded quarterly
A: Effective rate is the rate after considering the effect of the compounding.
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: tive rate? 7% p.a compounded quarterly
A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…
Q: what nominal rate of interest compounded monthly is equivalent to 12% per annum compounded…
A: The nominal rate of interest is the rate of interest that is considered before taking inflation.
Q: Find the APR (true annual interest rate), to the nearest half percent, for the following loan.…
A: formula for APR: APR=interestprincipaln×365×100 where, n = no of days in loan term
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: If the effective annual interest rate is 12.82% and the nominal annual rate is 12.25%, compounding…
A: Effective Annual Rate = 12.82% Nominal Annual Rate = 12.25%
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: What is the effective interest rate per month if the interest rate is 9% compounded continuosly?
A: The effective interest rate is the actual return on a savings account or any other interest bearing…
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: A rate of 2% per quarter compounded quarterly is closest to what annual compounded interest rate?…
A: The annual interest rate is computed after accounting for the number of periods of compounding and…
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: Find the effective interest rate per quarter at a nominal rate of 8% compounded. a. weekly b. daily
A: Effective Interest Rate is known as the real return that you earned on the your saving account or on…
Q: What is the rate of interest per interest period if the nominal rate of interest is 25% compounded…
A: nominal rate of interest = 25% Compounded monthly No. of period = 12
Q: Find the effective interest rate of 11% quarterly.
A: Nominal interest rate (r) = 11% Number of compounding per year (m) = 4
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: What is the equivalent simple interest (yield) for an investment of 8 % compounded quarterly? Round…
A: Effective Annual Rate The effective annual rate of interest is the actual or the real rate of…
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: What is the effective interest rate per quarter if the interest rate is 10% compounded monthly?
A: The real interest that an investor earns on the investment and a borrower pays on loan after…
Q: What is the annual percentage yield (APY) for money invested at an annual rate of 4.19% compounded…
A: Given data; interest rate = 4.19% compounded monthly. interest rate = 4.2% compounded quarterly
Q: 1. If the nominal annual interest rate is 15%, what is the effective interest rate when interest is…
A: Details given are : Nominal interest rate = 15% We need to compute the effective interest rate when…
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: 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: What is the effective annual interest rate of an investment that pays 6.5% annual interest,…
A: EAR is the actual rate of return investment or loan generates after taking compounding into account.…
Q: What is the effective annual interest rate for 10.5% compounded (a) Semiannually ? (b) quarterly…
A: Note: Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: An investment account earns 6.9% Interest, compounded continuously. What is the effective annual…
A: Given: Interest rate is 6.9%
Q: ctive rate? 6 % p.a compounded quarterly
A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…
Q: If the effective annual interest rate is 4%, compute the annual effective interest compounded…
A: If interest is compounded continuously, we should calculate the effective interest rate using the…
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: 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…
If the interest bearing account yielded an effective interest rate of 9% what would nominal rate, compounded quarterly be?
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- A nominal interest rate of 12% per annum compounded monthly is equal to what nominal interest compounded semi-annually?What is the nominal rate of interest compounded semi annually which is equal to 8.65% compounded quarterly in percent?An interest rate of 10% compounded semianually is equivalent to how many percent compounded quarterly?
- If the effective annual interest rate is 8%, what is the nominal annual rate if compounding is bi-monthly?An interest rate is quoted as 3.75% per year compounded quarterly, what is the effective daily rate?What is the effective rate (annually compounded rate) of interest corresponding to 9% compounded quarterly? What is the equivalent monthly rate?
- Suppose a savings and loan pays a nominal rate of 2.3% on savings deposits. Find the effective annual yield if interest is compounded quarterly.A rate of 2% per quarter compounded quarterly is closest to what annual compounded interest rate? (a) 2.00% (b) 8.00% (c) 8.24% (d) 24.00%if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest per bi month