If the interest rate is 12% compounded quarterly, what is the interest rate per conversion period?
Q: What is the effective annual rate of interest if $1200.00 grows to $1500.00 in two years compounded…
A: As per the given information: Future value = $1500 Present value = $1200 Period = 2 years compounded…
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: What is the nominal annual interest rate if the effective annual rate is 5.5% and compounding is…
A: In this question the compounding is continuous so the nominal rate needs to be converted to…
Q: At what nominal rate, compounded quarterly, would $15,000.00 have to be invested to amount to…
A: FV = PV * (1 + i/n)^(n * Years) Where FV = Future Value = $18276.04 PV = Present Value = $15000 i =…
Q: What is the present value of a stream of monthly payments of $500 each over 10 years, if the…
A: Monthly payment (P) = $500 Interest rate = 10% Monthly interest rate (r) = 10%/12 =…
Q: What is the present value of $6,700 received 14 years from now using a 11% interest or discount…
A: Calculation of Present Value:The Present Value is $1,466.53.Excel Spreadsheet:
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 effective equivalent annual interest rate is 18.1%, and interest is compounded quarterly (1…
A: Information Provided: Effective equivalent annual interest rate = 18.1% Compounding = Quartelry
Q: how much more interest will be earned if $4500 is invested for 7 years at an annual rate of 11%…
A: Given information: Present value is $4,500 Number of years is 7 Interest rate is 11%
Q: What is the future value of $3,100 in 17 years assuming an interest rate of 8.4 percent compounded…
A: Given,Present Value (PV) = $3,100Rate of Interest (r) = 8.4% or 0.084Time Period (t) = 17 yearsType…
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: 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 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: 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: What effective annual interest rate is equivalent to 9% compounded quarterly?
A: In this question we need to compute the effective annual interest rate compounded quarterly.
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 is the effective annual rate of interest if $1200.00 grows to $1500.00 in two years compounded…
A: Effective Annual Rate: It is the real rate of return paid on a loan or earned on an investment,…
Q: If the effective interest rate is 20% per annum, what is the Nominal Rate if it is? a.Compounded…
A: The effective annual rate of interest is the actual or the real rate of interest paid or received…
Q: Find the effective annual rate associated with an 8% nominal rate when interest rate is compounded…
A: The effective annual rate is referred to as the true interest rate on any interest-paying investment…
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: 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: Given a 10% APR, what is the Effective Annual Rate, given quarterly compounding? _%
A: Effective rate = [ 1 + ( APR / Number of compounding per year ) ]Number of compounding per year - 1
Q: What nominal rate per quarter is equivalent to an effective rate of 12.7% per year, compounded…
A: Effective Annual Rate: The effective annual rate of interest is the actual or the real rate of…
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: 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: 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: What will be the future worth of series of 15 annual $100 payments if the nominal annual interest…
A: An interest rate method in which current interest is computed by multiplying the interest rate by…
Q: What simple interest rate is equivalent to 5% compounded quarterly if money is invested for 10…
A: Concept. 1. Simple interest formula. SI = P × N × R…
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: 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 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: 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: 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: 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: 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 rate (EAR) for an APR of 10.90 percent compounded quarterly?
A: APR= 10.9% Compounded = Quarterly Find out Effective annual rate (EAR) Then for Quarterly APR=…
Q: mpoun
A: in this we need to find out effective rate and than find out nominal rate.
Q: An interest rate of 12% per year, compounded monthly is equivalent to what nominal and effective…
A: The nominal interest rate can be defined as the rate of return on an investment with out any…
Q: What is the effective annual rate on an investment that pays an interest rate of 8.25% continuously
A: in this we have to calculate the exponential form and find out effective interest rate.
Q: If the compounding frequency is monthly and the discount factor=0.62026, what is the value of the…
A: Let i(12) denote monthly interest rate Discount Factor = 1/(1+i(12)) 0.62026 = 1/(1+i(12)) i(12) =…
Q: How much is ₱1,200 worth at the end of 1 year if the interest rate of 5.5% is compounded quarterly?
A:
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 are the effective annual rates of the following: a) 12% APR compounded monthly? b) 16% APR…
A: Effective Annual Rates (EAR) = ( 1+ APR/m)m - 1 APR = Annual Percentage Rate n = number of…
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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?An interest rate of 10% compounded semianually is equivalent to how many percent compounded quarterly?If the effective annual interest rate is 4%, compute the annual effective interest compounded continuously.
- What is the effective annual interest rate of an investment that pays 6.5% annual interest, compounded quarterly?if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest per two years?What is the effective annual interest rate when 12% per year is compounded quarterly? 0.13 or 0.23?
- What interest rate, compounded monthly, is equivalent to a 10.04% effective interest rate?If the effective annual interest rate is 8%, what is the nominal annual rate if compounding is bi-monthly?Suppose that an investment promises to pay a real 9% annual rate of interest and inflation rate is 3%. What is the effective annual interest rate on this investment assuming that interest is compounded quarterly?
- If the stated interest rate is 8%, number of years is 3, and market interest rate is 12% compounded quarterly, then the present value factor of the lumpsum is:Suppose that an investment promises to pay a real 9% annual rate of interest and inflation rate is 3%. What is the effective annual interest rate on this investment assuming that interest is compounded quarterly? PLEASE SHOW HOW YOU COMPUTE EACH OF THE ITEMS.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
