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If the nominal rate of interest is 10% per annum and there is quarterly compounding, the effective rate of interest will be:
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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?If the nominal rate is 16.5% per year compounded quarterly, what is the equivalent effective rate of interest per three yearsAn interest rate is quoted as 4% per annum with quarterly compounding. What is the equivalent rate with (a) annual compounding (b) monthly compounding (c) continuous compounding
- If the effective interest rate is 20% per annum, what is the Nominal Rate if it is? a.Compounded Daily (360 Days) b.Compounded Daily (365 Days) c.Compounded Weekly d.Compounded Monthly e.Compounded Quarterly f.Compounded Semi-Annually g.Compounded AnnuallyFor an effective interest rate of 16% per annum, what is the equivalent nominal annual rate compounded semiannually? And quarterly ?And monthly ?if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest per bi month
- if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest per two years?The maturity value earned if OMR 800 is invested at a rate of 9% compounded quarterly for 2 years isYou are told that the nominal rate of interest is 3.46% per quarter year payable monthly. Calculate the equivalent effective annual rate of interest.
- What will be the future worth of series of 15 annual $100 payments if the nominal annual interest rate is 8 percent and the interest is compounded quarterly?Given the nominal rate of 12% per year compounded continuously, find a) Effective interest rate per year b) Effective per two years c) Effective per semi annual d) Effective per month e) Effective per quarterWhat is the effective annual rate of interest if $900.00 grows to $1200.00 in four years compounded quarterly?
