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The interest rate for an investment is 7% pa compounded monthly. Find the effective interest rate pa.
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- An investment earns an annual interest rate of 12 percent compounded Semi annually. What is the effective annual rate? Use excel.An investment with quarterly compounding has an effective rate of 6.00%. The nominal rate is:An investment earns an annual interest rate of 12 percent compounded quarterly. What is the effective annual rate?A. 3.00%.B. 12.00%. C. 12.55% Use excel
- Find the effective annual rate for an investment that pays APR of 4.5% with Annual compounding Quarterly compounding Monthly compoundingIf the accumulated value of an investment that is growing at 3.95% compounded semi-annually is $93,924.39, and the interest earned on this investment is $47,924.39, calculate the time period of this investment. Calculate the effective interest rate for each of the following nominal interest rates: a. 2.73% compounded quarterly. b. 2.73% compounded monthly.An investment of $3,100 is made for 4 months at an annual simple interest rate of 3.75%. What is the future value of the investment (in dollars)?
- If 36,400 dollars is invested at an interest rate of 7 percent per year, find the value of the investment at the end of 5 years for the following compounding methods. (a) what is the Annual: (b) what is the Semiannual: (c) what is the Monthly: (d) what is the Daily:If an investment grew to $15,000 in 2 years and the interest amount earned was $1,000, calculate the nominal interest rate compounded monthly.Suppose that an investment promises to pay a nominal 9.6 percent annual rate ofinterest. What is the effective annual interest rate on this investment assuming thatinterest is compounded (a) annually? (b) semiannually? (c) quarterly? (d) monthly? (e)daily (365 days)? (f) Weekly?
- An amount of $12 000 is invested for a period of 9 months at 3% p.a. compounded monthly. The compound interest formula to calculate the future value of an investment over a period of time is: What would the n in the formula be?What is the effective annual interest rate of an investment that pays 6.5% annual interest, compounded quarterly?If $12,000 is invested at an interest rate of 10% per year, find the amount of the investment at the end of 3 years for each compounding method.(a) Semiannually (b) Monthly(c) Daily (d) Continuously