if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest a) per year b) per semiannual C) per bi month d) per quarter
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 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 equivalent of a uniform series of quarterly payments of $4,500 each for four…
A: Quarterly Payment = 4500 Time Period = Number of quarterly payments = 16 quarters Quarterly Payment…
Q: Calculate the APR for a 10% per annum nominal rate of interest that is compounded (a) 2 times per…
A: The annual percentage rate (APR) seems to be the annual interest earned by an amount charged to…
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: 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 is the nominal annual rate of interest compounded quarterly if a loan of $21,500 is paid in…
A: Semi-annual effective interest rate is calculated as below in the excel:
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: Find the nominal rate compounded monthly which is equivalent to 12% compounded quarterly. What is…
A: Interest rate = 12% compounded quarterly We need to find the nominal rate compounded monthly which…
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: 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: If a sum of $3000 is borrowed for six months at 9 percent simple interest per year, what is the…
A: A method of computing interest amounts in which the compounding effect was not considered by the…
Q: Determine the annual rate of interest compounded daily that is equivalent to 9% per annum compounded…
A: Interest rate per annum = 9% Monthly Interest Rate(r) =9%/12 = 0.75% Number of terms(n) = 1*12 = 12…
Q: Find the effective rate of interest corresponding to a nominal rate of 7% per year compounded…
A: This question require us to compute the effective rate of interest.
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: a) Determine the present equivalent value of $10,000 paid every three months over a period of seven…
A: The present value is the addition of the discounted values of the future payments.
Q: What is the discounted value of $844 paid at the end of every three months for 10 years if…
A: Computation:
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: 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: find the nominal annual rate of interest compounded semi-annually that is equivalent to 8.6%…
A: The effective annual rate of interest is the actual or the real rate of interest paid or received…
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: For an APR of 10% per year, if interest is compounded quarterly, determine the nominal rate per (a)…
A: a.
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: For an interest rate of 2% per month, find (a) the effective rate per quarter, and (b) the effective…
A: The effective interest rate is the rate that is charged by the lender from the borrower for the cost…
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: If the interest rate is stated as 2.2% per 6 months compounded continuously, the effective annual…
A: Here, Interest Rate Per 6 Month is 2.2% Therefore, Annual Interest Rate is: =2.2% ×2=4.4%…
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: 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: What is the discounted value of $1433.00paid at the end of every six months for 6 years if interest…
A: Present Value of annuity refers to the present value of all the future payments of and series of…
Q: A series of equal quarterly payments of $6,000 for IO years is equivalent to what present amount at…
A: Formula used to compute present equivalent worth: Formula to compute effective interest rate:
Q: A series of equal quarterly payments of $6,000 for 10 years is equivalent to what present amount at…
A: Information Provided: Quarterly payments = $6000 Years = 10 Interest rate = 12%
Q: For total yearly payments of $10000 for 10 years, compare the compound amount accumulated at the end…
A: An ordinary annuity is a series of equal payments made over a period of time. It has been…
Q: What quarterly compounded nominal interest rate is earned on payments of $215 paid at the beginning…
A: An annuity is a payment plan where a fixed recurring amount is paid in return for a lump sum amount.…
Q: An interest rate of nominal 10% per year, compounded weekly, is
A: The nominal rate is the rate of interest an investment generates without taking the compounding…
Q: What value of r will make the future value of the account P5, 200 in six months?
A: Future Value: It is the future worth of the present cashflows or the present sum of money. Future…
Q: If the interest rate is 9% compounded monthly, find the present value of 24 month payments of…
A: Interest rate is 9% Compounded monthly Amount of monthly payment is P1000.00 Time period 24 months…
Q: What is the effective annual rate of interest if $900.00 grows to $1200.00 in four years…
A: Using excel RATE function
Q: (a) If the interest rate is 6% per year compounded quarterly, what is the effective annual interest…
A: Information Provided: Interest rate = 6% compounded quarterly NOTE: As per our policy, we only…
Q: What is the nominal annual rate of interest compounded quarterly if a loan of $22,500 is repaid in…
A: The nominal interest rate is the stated interest rate. The nominal interest rate doesn't consider…
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: If 8% per year is compounded bi-annually, what is the effective annual rate?
A: The effective annual rate is the rate that has an annual compounding frequency. It is calculated to…
Q: An interest rate of effective 30% per year .compounded semiannually is nearest to
A: Interest rate per year= 30% Rate of interest when compounded semi annually=?
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- Problem 2An interest rate of 8% compounded semi-annually is how many percent if compounded quarterly. Given: Required: Solution:A. Exercise practice 1. What nominal rate compounded quarterly is equivalent to 12% compounded semi annually? 2. What nominal rate compounded semiannually will yield the effective rate 6%? 3. Find the effective rate equivalent to 16% compounded quarterly. 4. What simple interest rate is equivalent to 15%, semi-annually for 13 years?26. What is the effective annual interest rate of an investment that pays 6.5% annual interest, compounded daily, assuminga 365-day year? Round your answer to two decimal place
- 1. What nominal rate compounded semiannually will yield the effective rate 6%? 2. Find the effective rate equivalent to 16% compounded quarterly. 3. What simple interest rate is equivalent to 15%, semi-annually for 13 years?Hh1. Account What nominal rate per week is equivalent to an effective rate of 10.5% per year, compounded continuously?(a) What is the simple interest on ₱ 30,000 for six months at a simple interest rate of 12% (b) What is the compound interest if the same investment is compounded quarterly? (c) Obtain the difference. Note: please find also the compound amount and compound interest
- PART 1. ANNUITY DUE PROBLEMS a. Am investment of 300 is made at the beginning of each month for 4 years and 3 months. How much will the investment be at the end of the term, if interest is 7% compounded monthly? b. Find the cash equivalent of an item that was purchased for 1,900 down payment and 350 at the beginning of each six months for 3 years and 6 months if interest is 5% compounded semi-annually?N2 An amount of $45,560 will provide 9 years of payments of $1,776.80 at the end of every 3 months. Find the corresponding interest rate as a percentage with 2 decimals, e.g., 9.87 a) What is the monthly compounded nominal rate? Mode N= P/Y= Rate = b) What is the effective rate?Answer the following Compound Interest problem using the provided formula ONLY. Show your complete solution. 11. Compound Interest What rate in percent compounded monthly is equivalent to 18% compounded semi-annually? 14. When compounded bi-monthly, P150,000 becomes P223,183 after 5 years. What is the nominal rate of interest?
- Q1) If a saving account awards interest of 6 percent per year compounded quarterly What amount must be deposited today in order to accumulate $25,00 after 8 years? How much interest will be earned?1. What is the future value of $3,100 in 17 years assuming an interest rate of 8.4 percent compounded semiannually?12. What is the nominal annual rate of interest compounded semi-annually if deposits of $225 made each month for 4.0 years accumulate to $ 12,200? The nominal annual rate of interest is % compounded semi-annually. (Round to two decimal places as needed
