The effective rate of interestis 3.25% per annum. Calculateto 6 sf. (a)The equivalent rate of discount. (b)The equivalent rate of interest calculated monthly (c)The equivalent rate of discountcalculated half yearly.

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: if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate…

A: Effective rate of interest is rate which is computed after taking into account all the compounding…

Q: If the nominal rate of interest is 10% per annum and there is quarterly compounding, the effective…

A: The question is based on the concept for calculation of effective interest rate.  Formula as :…

Q: What is the discounted value of ​$899.00 paid at the end of every month for 3 years if interest is…

A: RATE (12%/2) 6% YEARS(7*2) 14 PERIOD PAYMENT  (899*6) 5394 FUTURE VALUE $0

Q: What is the present value of $6,700 received 14 years from now using a 11% interest or discount…

A: Calculation of Present Value:The Present Value is $1,466.53.Excel Spreadsheet:

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: $4200 is invested for 9 months at an annual simple interest rate of 12%. How much interest will be…

A: Simple interest is interest calculated on the principal investment, i.e no interest will be…

Q: Find the present value and the compound discount of $6 600.00 due in seven years, three months, if…

A: It is given that,Future value is $6,600.Interest rate is 7.2% compounded quarterly. So, interest…

Q: What is the discounted value of $780.00 paid at the end of every six months for 10 years it interest…

A: Introduction Discounted Value or Present Value: Given a certain rate of return, present value (PV)…

Q: What is the present value of $2,100 to be received 14 years from now assuming a discount rate of…

A: Given information: Future value of amount is $2,100 Number of years is 14 Discount rate is 3.7% for…

Q: Assuming an annual effective interest rate of 5%. Which of the following annuities with 12 payments…

A: The present value of the annuity is calculated by discounting the future payments at the required…

Q: What will be the present value, if $6,800 is discounted back 4 years at an interest rate of 4%…

A: Interest rate=4%Period=4yearsFuture value=$6800

Q: What is the discounted value of $1185.00 paid at the end of every throe months for 4 years if…

A: Using excel PV function to calculate the discounted value

Q: What rate compounded quarterly is equivalent to (a) 10% effective, (b) 10% compounded monthly, (c)…

A: The effective annual rate of interest is the actual or the real rate of interest paid or received…

Q: What rate compounded quarterly is equivalent to 10% simple discount rate for 2 years?

A: Compounding interest is the additional interest to the principal sum of the amount.

Q: What is the present value of $2,300 received 5 years from now using a 3% interest or discount rate,…

A: In the given question we need to compute the present value from below details: Future value = $2300…

Q: Find the AV of $3,500 at the end of 10 years at an annual effective interest rate of 4.9% for the…

A: Given Information: Future value is $3500 Annual effective rate for 3 years is 4.9% For remaining…

Q: What rate compounded quarterly is equivalent to (c) 10% simple interest for two years, and (d) 10%…

A: In this we have to find out annual equivalent  rate compounding quarterly.

Q: What is the annual effective interest rate equivalent to a nominal rate of 12 percent a year? Yanıt:

A: The effective rate of interest is an important technique in the case of multi-period compounding. If…

Q: What is the effective annual interest rate of an investment that pays 7.6% annual interest,…

A: The effective annual interest rate is defined as the real return on any interest paying investment…

Q: An amount of P dollars is borrowed for the given length of time at an annual simple interest rate of…

A: Amount due at the end of period can be calculated as sum of borrowing and simple interest

Q: P100 is received at the end of one year, P500 at the end of two years, and P1000 at the end of three…

A: Present value is the sum of discount value of all future cash flows.

Q: If the nominal rate is 16.5% per year compounded quarterly, what is the equivalent effective rate of…

A: Annual interest rate (R) = 16.5% Compounding per year (M) = 4 Period of effective rate (N) = 3 Years

Q: est is paid at a rate of 5% per year, compounded quarterly, what is the effective annual rate?

A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…

Q: The interest rate on a GIC is 3.50% compounded quarterly. What is the purchase price of the GIC if…

A: Interest is compounded quarterly. I = 3.5% = 3.5 ÷ 4 = 0.875% = 0.00875 F = A (1+ i)n 33103 = A ( 1+…

Q: Calculate the rate of simple interest per annum offered on savings of $2,600.00 if interest earned…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: At 9% per year simple interest, $1000 is equivalent to $1270 in three years. Define the symbols for…

A: Interest charged on the principal amount at a fixed rate for a fixed period of time is known as…

Q: What is the present value of $11,800 received 20 years from now using a 13% interest or discount…

A: In the given question we needs to calculate the present value from following details: Future value =…

Q: What is the percent value of $2,725 per year, at a discount rate of 10%, if the first payment is…

A: The time value of money implies that the cash in hand at present has a higher value than the cash…

Q: If the present value of $400 paid one year from now is $320, what is the one-year interest rate?…

A:

Q: The present value of P 14,000.00 has a true discount of P 14,700.00 in 7 years. How much is the rate…

A: Future value of amount  is computed as sum of present value  and true  discount.

Q: If you are offered a nominal interest rate of 5% per annum, compounded monthly, what is the…

A: In this question we require to compute the effective annual interest rate from following details:…

Q: Determine the discount rate assuming the PV of $1080 at the end of 1-year is $980? $9,800 is…

A: Future Value = Present Value * (1+r)^n Where. r = rate of interest n = no. of years

Q: What amount will be accumulated by Php 1,520 in 10 semi annuals at 6% compounded bi-monthly? What…

A: Since you have asked multiple questions, we will solve the first question for you as per policy.…

Q: An interest rate is 7.50% per annum with continuous compounding. What is the equivalent rate with 6…

A: Interest rate (r) = 7.50% Compounding = Continous Mathematics constant (e) =…

Q: mpoun

A: in this we need to find out effective rate and than find out nominal rate.

Q: What nominal interest rate is implied if you borrow 12,500 and repay 21,364.24 in three years with…

A: Using excel RATE function

Q: Determine the discount rate assuming the PV of $1080 at the end of 1-year is $980? 2. $9,800 is…

A: Present value=$980Future value=$1080Period=1

Q: Determine the simple interest. The rate is an annual rate. Assume 360 days in a year. p = $340, r =…

A: Simple interest = Principal * Interest rate * Time period

Q: A deposit of $1000 compounds to $2500 in 5 years. The interest on this account compounds quarterly.…

A: Future Value is the value of current investments at a certain future date at the assumed…

Q: Find the annual simple interest rate equivalent to an annual simple discount rate of 5.3% over a…

A: Simple Interest refers to method of charging interest on starting principal amount throughout the…

Q: Find the present value

A: Time value of money (TVM) means that the amount of money received today will be worth more than…

Q: The interest rate on a GIC is 3.24% compounded semi-annually. What is the purchase price of the GIC…

A: The formula used is shown:

Q: If compounding is quarterly, what effective annual interest rate will make the following values of P…

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: A ser of four annual constant-dolar payments beginning with S10,000 at the end of the first year is…

A: so i=1.15/1.07=1.0747663 =7.47663%

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.