Q: An investment at 15% APR compounded monthly is equivalent to an effective annual interest rate of?
A: EAR formula: EAR=1+RMM-1 WHERE, R=rate of interest M=frequency of compounding
Q: Estimate the annual percent rate for the add on loan Using the given number of payments and annual…
A: As per the information provided: N = 48 R = 8% To determine: We have to estimate the annual…
Q: If the annual interest rate is 9% and inflation rate is 5%. What does the tax rate have to be in…
A: Real rate of return=1+annual interest rate1+Inflation rate-1=1.091.05-1=3.8%
Q: What is the interest rate if the principal amount is P2,000.00 and the interest is P500.00 for 6…
A: Interest = Principal * Rate * Time where, Interest = P500.00 Principal = P2,000.00 Time = 6 months =…
Q: If the nominal interest rate is 16.75%, find the effective ual rate with quarterly compounding.…
A: Because you have posted multiple questions, we will answer only the first question and if you want…
Q: What interest rate, compounded monthly, is equivalent to a 10.04% effective interest rate?
A: Effective interest rate : In simple words, the actual rate of return that an individual receives…
Q: f a Condura Ref. costs P 24,830 will have an interest of P 2505 monthly that is payable for a year,…
A: The rate of interest is the basis for the calculation of monthly, annual, or quarterly interest. Any…
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: If $500 is borrowed and the interest after 18 months is $45, what is the annual interest rate for a…
A: Given:
Q: What nominal interest rate compounded semi-annually is equivalent to j52 14%?
A: Nominal Interest rate Nominal interest rate refers to the simple annual interest rate without…
Q: f the interest is compounded monthly then m is equal to?
A: Compound Interest Compound Interest refers to the interest generated on principal as well as on the…
Q: What interest rate compounded monthly is equivalent to a 10% effective rate?
A: Given, Effective rate=10% Compounding frequency=12
Q: a. What is the interest rate per month that is equivalent to 4.26% p.a.?
A: Interest rate is the the rate of interest of due period as a sum of the money borrowed.
Q: what simple interest rate is equivalent to 1% compounded quarterly
A: Simple interest rate is the rate which does not compound means under this rate there is no concept…
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 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: What is the equivalent effective rate of interest compounded quarterly if the ne is 19.5%? O 20.97%
A: Effective rate is interest rate after considering the effect of the compounding and while nominal…
Q: The annual inflation rate is expected to be 4.78% and the nominal (annual) interest rate is 5.75%.…
A: Inflation rate (π) =4.78% Nominal rate of interest (i)=5.75%. Using Fischer equation, real interest…
Q: If the effective annual interest rate is 10%, what is the nominal annual rate if compounding is bi-…
A: Interest rate refers to the percentage at which a borrower pays the interest amount on the loan…
Q: If the annual interest rate is 12.9% and the dollar amount compounds daily, you would ( a. multiply…
A: Data given: Annual Interest rate=12.9% compounded daily. (Annual means N=1 year)
Q: The (blank) interest rate is referred to as APR and the (blank) interest rate is the true rate…
A: Effective rate ( EAR) FORMULA: EAR =1+APRMM-1M = frequency of compounding
Q: A saving account earns a nominal rate i(©) = 0.06. If the income tax of the earnings from this…
A: The amount that is being received by an individual today has more value than receiving the exact…
Q: Find the nominal interest rate compounded quarterly which could be used instea compounded monthly.…
A: In this we have to find effective interest rate in both cases and find equivalent rate.
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: What is the annual interest rate earned by a 33-day T-bill with a maturity value of $1,000 that…
A: solution Given Maturity value 1000 Present value 996.16 Duration of t bill 33 day…
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: How long will it take to money quintuple at 10% interest rate when interest compounded: (i)…
A: A study that proves that the future worth of the money is lower than its current value due to…
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: If the interest rate is 9%, what is the two-year discount rate?
A: In DCF, the Discount rate refers to the discounting factor representing the time value of money.
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: 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 dollar advantage of Alt. II over Alt. I at an interest rate of 15%?
A: For considering the comparison between the two alternatives, we will first calculate the present…
Q: What is the uniform annual equivalent if the interest rate is 7% per year?
A: Uniform Annual Equivalent Payment: It is one of the methods used in capital budgeting for the…
Q: What is the effective interest rate per quarter if the interest rate is 8% compounded continuously?
A:
Q: Suppose that the monthly compounded annual interest rate is 2.5%. What is the [2] present value β of…
A: The time value of money concept states that the dollar sum may have different purchasing powers in…
Q: What interest comp. monthly is equivalent to an interest rate of 16.3% comp. quarterly?
A: First, we need to convert Quaterly compounded rate to Effective Annual Rate So, 16.3% Compounded…
Q: If $800 is borrowed and the interest after 6 months is $44, what is the annual interest rate for a…
A: Principal Amount = $800 Time Period = 6 Months Interest = $44
Q: If the annual interest rate is 5%, what is the rate for each quarter? Your answer: O5 % O 1.5% O…
A: Annual interest rate is the rate at which amount is borrowed from the lender on which interest is…
Q: What is the future value of an investment that pays P2,500 at the end of each period with an…
A: future value of an investment that pays P2,500 at the end of each period with an interest rate of…
Q: Suppose the inflation rate is compounded annually at 3% APR. Do you prefer compounded semiannually…
A: Here, Inflation Rate is 3% APR compounded annually Nominal Interest Rate is 5% APR compounded…
Q: What nominal interest rate compounded quarterly is equivalent to j∞=j∞= 7%?
A: Nominal Interest Rate: This percentage increase in the amount of money you pay the lender in…
Q: If the nominal rate of interest paid on a savings account is 2% compounded monthly, what is the…
A: In this question we need to calculate the effective rate of interest.
If the interest rate per day is 0.014%, then what is the annual rate?
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- Will the effective annual rate ever be equal to the nominal (quoted) rate?What interest rate, compounded monthly, is equivalent to a 10.04% effective interest rate?If the compounding frequency is monthly and the discount factor=0.62026, what is the value of the corresponding annual interest rate? What is the corresponding continuous compounding annual interest rate if the discount factor remains at 0.62026?
- What is the rate of interest per interest period if the nominal rate of interest is 25% compounded monthly?If the effective annual interest rate is 8%, what is the nominal annual rate if compounding is bi-monthly?If the stated annual rate of interest compounded semi-annually is 12.5% then what is the equivalent monthly rate compounded monthly?
- what simple interest rate is equivalent to 1% compounded quarterlyWhat is the nominal rate of interest compounded semi annually which is equal to 8.65% compounded quarterly in percent?What is the effective rate (annually compounded rate) of interest corresponding to 9% compounded quarterly? What is the equivalent monthly rate?
- What interest rate compounded monthly is equivalent to a 10% effective rate?The annual inflation rate is expected to be 4.78% and the nominal (annual) interest rate is 5.75%. What is the real interest rate?what nominal rate of interest compounded monthly is equivalent to 12% per annum compounded quarterly?