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A nominal interest rate of 12% per annum compounded monthly is equal to what nominal interest compounded semi-annually?
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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 11.5% per year compounded continuously, what is the equivalent effective rate of interest per bi monthFor an effective interest rate of 16% per annum, what is the equivalent nominal annual rate compounded semiannually? And quarterly ?And monthly ?
- 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 AnnuallyIf the nominal rate is 16.5% per year compounded quarterly, what is the equivalent effective rate of interest per three yearswhat nominal rate of interest compounded monthly is equivalent to 12% per annum compounded quarterly?
- An 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 compoundingAn interest rate is quoted as 3.75% per year compounded quarterly. What is the effective daily rate?If the nominal rate of interest is 10% per annum and there is quarterly compounding, the effective rate of interest will be:
- An interest rate is quoted as 3.75% per year compounded quarterly, what is the effective semi-annual rate?An interest rate of 10% compounded semianually is equivalent to how many percent compounded quarterly?Determine the annual rate of interest compounded daily that is equivalent to 9% per annum compounded monthly