P. rndl" = Find the effective bimonthly interest rate equivalent to: a) nominal annual interest of 8%, compounded 6 times per year; Answer = %. b) nominal annual discount of 4%, compounded quarterly; Answer = %. c) nominal annual interest of 3%, compounded continuously; Answer = %.
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A: Because you have asked a question with multiple parts , we will solve the first 3 parts for you as…
Q: End the effective bimonthly interest rate equivalent to: a) nominal annual interest of 8%,…
A: Effective annual rate=1+rmm-1where,r=rate of interestm= frequency of compounding
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A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
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Q: mpoun
A: in this we need to find out effective rate and than find out nominal rate.
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A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
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- Assume an effective compound interest rate 6% per annum. a) The nominal interest rate payable semi-annually b) The effective interest rate payable quarterly c) The effective rate of discount per annum d) The nominal rate of discount payable monthlyThe current amount A of a principal P invested in a savings account paying an annual interest rate r is given by A = P(1+r/n)^(rt) where n is the number of times per year the interest is compounded. For continuous compounding, A = Pe^(rt). Suppose $10,000 is initially invested at 2.5 percent (r = 0.025). a. Plot A versus t for 0 ≤ t ≤ 20 years for four cases: continuous compounding, annual compounding (n = 1), quarterly compounding (n = 4), and monthly compounding (n = 12). Show all four cases on the same subplot and label each curve. On a second subplot, plot the difference between the amount obtained from continuous compounding and the other three cases. b. Redo part a, but plot A versus t on log-log and semilog plots. Which plot gives a straight line?Identify each of the following interest rate statements as either nominal or effective.a. 4% per yearb. 6% per year compounded annuallyc. 10% per quarterd. 8% per year compounded monthlye. 1% per monthf. 1% per month compounded monthlyg. 0.1% per day compounded hourlyh. effective 1.5% per month compounded weeklyi. 12% per year compounded semiannuallyj. 1% per month compounded continuously
- What amount will be accumulated by Php 1,520 in 10 semi annuals at 6% compounded bi-monthly? What effective annual interest rate corresponds to the following situations? a. nominal interest rate of 4% compounded bi-monthly b. nominal interest rate of 5% compounded quarterly c. nominal interest rate of 6% compounded continuouslyA bank quotes you an interest rate of 6.6% per annum with quarterly compounding. What is the equivalent rate with annual compounding? Enter your answer in percentage rounded to two decimals places (e.g, 15.45%)Using Table 11-1, compute the amount of compound interest (in $) earned in 1 year and the annual percentage yield (APY) for the investment. (Round your answers to two decimal places.) Principal NominalRate (%) InterestCompounded Compound InterestEarned in 1 Year Annual PercentageYield (APY) $6,000 12 semiannually $ %
- Suppose that a company borrows 20,000 for 1 year at a stated rate of interest of 9 percent. What is the annual percentage rate (APR) if interest is paid to the lender in annually? semiannually? quarterly?Assume the interest is 8% compounded quarterly. a)Find the quarterly effective interest rate for 8% compounded quarterly. (b) Find the future value at the end of the 8th quarter of the cash flows identified at the end of quarter 4 and quarter 8. (c) Find the end of quarter deposits, A, that are equivalent to the future value you calculated in part b.*Using Matlab* The current amount A of a principal P invested in a savings account paying an annual interest rate r is given by A = P(1+r/n)^(nt) where n is the number of times per year the interest is compounded. For continuous compounding, A = Pe^(rt). Suppose $10,000 is initially invested at 2.5 percent (r = 0.025). a. Plot A versus t for 0 ≤ t ≤ 20 years for four cases: continuous compounding, annual compounding (n = 1), quarterly compounding (n = 4), and monthly compounding (n = 12). Show all four cases on the same subplot and label each curve. On a second subplot, plot the difference between the amount obtained from continuous compounding and the other three cases. b. Redo part a, but plot A versus t on log-log and semilog plots. Which plot gives a straight line?
- Find the effective interest rate (effective annual yield) of an investment that pays 10% per year (quoted or nominal rate) with the interest reinvested quarterly. a. .116 b. .199 c. .104 8 d. 188 The effective interest rate (effective annual vield) is the actual percentage interest paid by the bankDetermine if the interest rates below are nominal or effective (or effective annual). 5% per year compounded semiannually 18% per year compounded monthly 1.5% per month compounded monthly 6% per six months compounded annually 4% per month compounded quarterly 3% per quarter compounded monthly 12% per year compounded continuously 1% per month compounded continuously 1% per week compounded monthly 6% per year compounded weeklySuppose that an investment promises to pay a nominal 9.6 percent annual rate of interest. What is the effective annual interest rate on this investment assuming that interest is compounded (a) annually? (b) semiannually? (c) quarterly? (d) monthly? (e) daily (365 days)? (f ) continuously? (Note: Report your answers accurate to four decimal places –e.g., 0.0987 or 9.87%.)