If the nominal rate of interest paid on a savings account is 2% compounded monthly, what is the effective rate of interest?

Q: A credit card company compounds monthly and charges an interest of 1 ½ % per month. What is the…

A: Effective Interest Rate It is a rate that discounts the approximate future cash flows over the…

Q: A person deposits an annual amount into a savings account that decreases at a constant rate of $ 500…

A: Here, First Deposit is $10,000 Constant Decrease in payment is $500 Interest Rate is 15% Last…

Q: You put $1, 000 into a savings account today that offers a 5% APR with semi-annual compounding…

A: Interest rate is the rate that is charged on the money (Principal) lent by the lender to the…

Q: What is the interest earned in a savings account after 12 months on a balance of $4000 if the…

A: Since compounding is annually and we have to find the interest earned for 12 months, formula would…

Q: Suppose you have received a credit card offerfrom a bank that charges interest at 1.4% per…

A: Working note:

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: 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: Suppose that you make quarterly deposits into a savings account that earns 8% interest compounded…

A: Effective Annual Rate is a modified rate of return where it considers the compounding effect.…

Q: If you deposited $18000 and the bank is paying 7% interest compounded monthly, how much would be…

A: We know that the formula to calculate the accumulated value of cash flow is C*(1+r)n, where C is the…

Q: What effective annual rate can a bank earn on an APR of 10.5 percent, compounded monthly? Can the…

A: Given information: Annual percentage rate : 10.5% Compounding frequency : 12

Q: How much money should be on the account today in order for annually withdrawals of $100.00 to be…

A: Here we will use the concept of time value of money. As per the concept of time value of money the…

Q: If you borrow $7,500 at $550 interest for one year, what is your effective interest rate for the…

A: The effective rate of interest refers to the return on savings or interest on the investment…

Q: If your credit card’s APR is 24% compounded daily, what isthe effective annual interest rate that…

A: Given information: APR is 24% compounded daily

Q: How much will the account contain after 9 years and 3 months? How much interest will be earned?

A: Deposit amount = $600  Interest Rate = 5±70 compounded quarterly i.e 4.3 or 5.7 compounded quarterly…

Q: Suppose an annuity pays $2000 at the end of each 3 month period for 3.5 years at an interest rate of…

A: given, A = $2000 n = 3.5 r = 4% pa but it is compounded quarterly therefore, frequency of…

Q: How long will it take money to triple itself if invested at 8.35% compounded quarterly? What is the…

A: The number of years it will take for the money to triple can be computed with the help of NPER…

Q: If the bank quotes a loan APR of 9% per annum, compounded monthly, what do you have to pay back in 1…

A: Compound interest= P(1+r%/n)^tn Interest rate = 9% Borrow amount= 100

Q: If a bank was offering a nominal rate of return of 12% compounded monthly, what is the annual…

A: Formula: Annual effective rate = ( 1 + r / N )N - 1 R = rate of return N = Period

Q: What is the interest earned in a savings account after 12 months on a balance of $1000 if the…

A: Because a dollar on hand now is worth more than a dollar promised in the future, the time value of…

Q: Suppose you deposit $22.000 in an account today that pays 6% interest, compounded annually. How long…

A: Information Provided: Initial deposit = $22,000 Future value = $76,000 Interest rate = 6% compounded…

Q: If $6,840.00 is loaned for 4 months at an annual simple interest rate of 3.5%, how much interest is…

A: Principal =$6840 Time = 4 months Simple Interest = 3.50%

Q: Suppose that you deposit $10 at the end of each day into a savings account that pays 2% interest…

A: Accumulated value can be defined as the sum of investment and interest earned on investment over a…

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: You wish to make 4 equal annual deposits into a savings account such that at the time of your last…

A:

Q: you make 11 semi annual deposits of 550 pesos into a savings account the interest rate is 4.72%…

A: Interest rate=4.72% compounded quarterly Interest rate per quarter=4.72%4=1.18% Interest rate per…

Q: What should the monthly payments be if Leons is to earn 15% compounded monthly on its account…

A: A stream of equal cash flows paid or received periodically is termed as annuity. Annuity is either…

Q: Your bank account compounds interest monthly and has an annual percentage rate of 24 percent. What…

A: When the effects of compounding over time are considered, the effective annual interest rate is the…

Q: Suppose you put $250 at the beginning of every month in a savings account that credits interest at…

A: Monthly deposit is $250. Annual rate of interest is 6%. Time period is 25 years. Compounding…

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 a credit card charges 1½% interest every month, what are the nominal and effective interest rates…

A: The effective annual rate of interest is the real return on the savings account when the effects of…

Q: What is the future value of $1,100 placed in a savings account for 4 years if the account pays 7%…

A: Following information is given in the question: Present value (Investment today) = $1100 Time period…

Q: rate of 9%, compounded quarterly, how much should you invest in the account now?

A: An account provides interest over and above the invested sum of money. The nominal rate is the rate…

Q: you receive a credit card offer that charges interest at 1.75% per month compounded monthly. What is…

A: Information Provided: Interest rate = 1.75% Compiunding = monthly

Q: If the interest rate on a loan is 1% per month, the effective annual rate of interest is

A: Effective Annual Rate  = [(1 + r)^n] - 1Where r = 1%n = number of period = 1 years*12 = 12

Q: You put \$1,000$1,000 into a savings account today that offers a 5\%5% APR with semi-annual…

A: Banks usually offer loans to customers, and they also accept deposits from the customers. The…

Q: What would be the value of a savings account started with $1,200, earning 3 percent (compounded…

A: We need to calculate the value of the account after 10 years by using future value of a single…

Q: If $6,840.00 is loaned for 4 months at an annual simple interest rate of 3.5%, how much interest is…

A: Given information: Principal (P): $6,840 Time (T) : 4 months Rate of interest (R) : 3.5%

Q: How much money must be deposited in a savings account each quarter in order to accumulate $10,000 at…

A: The Future Value of the annuity is the total value of all the payments which is occurred regularly…

Q: If you borrow $1,000 and pay back $1,728 in three years, what annual rate of interest are you…

A: Annual Percentage rate (APR) is the percentage rate that shows the interest calculates on the…

Q: Suppose you have received a credit card offer from a bank that charges interest at 1.1% per quarter,…

A: The nominal rate is the rate that the financial institution quotes when giving out or receiving…

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…

Q: If you put $6,000 in a savings account that yields an 1% rate of interest compounded daily, what…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: How long will a particular amount of money to double itself if it is earning interest at an annual…

A: Using excel NPER function