Q: What is the present value of $8,000 to be received eight periods from today assuming a compound…
A: The present value refers to the value of future cash flows at present. The future value is…
Q: An investment at 15% APR compounded monthly is equivalent to an effective annual interest rate of?
A: EAR formula: EAR=1+RMM-1 WHERE, R=rate of interest M=frequency of compounding
Q: Estimate the annual percent rate for the add on loan Using the given number of payments and annual…
A: As per the information provided: N = 48 R = 8% To determine: We have to estimate the annual…
Q: What nominal annual discount rate compounded semiannually is equivalent to a nominal rate of…
A: Nominal Interest Rate: When the market inflation is not taken into consideration while computing the…
Q: 1. What is the present worth of a P1000 annuity starting at the end of the third year and continuing…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: An investment pays you 9% interest, compounded quarterly. What is the periodic rate of interest?…
A: Using excel effective rate of interest function
Q: What interest rate, compounded monthly, is equivalent to a 10.04% effective interest rate?
A: Effective interest rate : In simple words, the actual rate of return that an individual receives…
Q: What is the nominal rate if the effective rate is15.32% compounded semi-annually?
A: Effective annual rate (EAR) refers to a real interest rate which an investor is expect from his…
Q: What interest rate compounded monthly is equivalent to a 10% effective rate?
A: Given, Effective rate=10% Compounding frequency=12
Q: ears if the annual interest rate is 8 percent. a. What would be the future value if the interest…
A: Simple interest is that no interest on interest is considered and in compounding interest interest…
Q: What is the present value of twelve annual payments of $5,000, starting today if the interest rate…
A: Annual payment = $ 5,000 Annual interest rate = 13% Number of annual payments = 12
Q: What nominal rate compounded semi-annually yields the same amount as 20 % compounded quarterly?
A: Given rate (r) = 20% quarterly compounded (Compounding frequency = 4) Let i = Nominal rate…
Q: What is the effective annual interest rate when 12% per year is compounded quarterly? 0.13 or 0.23?
A: In this we have to calculate the effective interest rate annually.
Q: What effective annual interest rate is equivalent to 9% compounded quarterly?
A: In this question we need to compute the effective annual interest rate compounded quarterly.
Q: A nominal interest rate of 11.333%, continuously compounded, yields an effective annual interest…
A: Effective annual rate = e^r - 1 where, r= nominal interest rate
Q: At what nominal interest rate will money double in 8 years if interest is compounded quarterly? What…
A: Solution Given Rate of interest compounded quarterly =? Number of…
Q: If the effective annual interest rate is 15% then what is the equivalent annual rate compounded…
A: Effective annual rate (EAR) = 15% Number of compounding per year (m) = 4
Q: What nominal rate per quarter is equivalent to an effective rate of 12.7% per year, compounded…
A: Effective Annual Rate: The effective annual rate of interest is the actual or the real rate of…
Q: what nominal rate of interest compounded monthly is equivalent to 12% per annum compounded…
A: The nominal rate of interest is the rate of interest that is considered before taking inflation.
Q: What nominal interest rate per year is equivalent to an effective 18% per year compounded…
A: Given: Effective interest rate = 18% Compounding semi annually
Q: What is the nominal rate of interest compounded semi annually which is equal to 8.81% compounded…
A: Interest rate (APR) = 8.81% Compounding per year (M) = 4
Q: If the effective annual interest rate is 10%, what is the nominal annual rate if compounding is bi-…
A: Interest rate refers to the percentage at which a borrower pays the interest amount on the loan…
Q: For an effective interest rate of 16% per annum, what is the equivalent nominal annual rate…
A: The periodic interest rate is multiplied by the number of periods in a year to create the nominal…
Q: What is the corresponding effective interest rate of 18% compounded semi-annually?
A: The effective interest rate is the real return earned on an interest-paying investment or savings…
Q: Find the nominal interest rate compounded quarterly which could be used instea compounded monthly.…
A: In this we have to find effective interest rate in both cases and find equivalent rate.
Q: What is the annualized investment rate % on a Treasury bill that you purchase for 9310 that will…
A: Value at the maturity (F) = 9533 Purchase price (P) = 9310 n = 91 days
Q: What effective interest rate per year is equivalent to 19% per year compounded quarterly?
A: Formula for effective rate of interest = (1+i/n)n-1…
Q: What is the effective annual interest rate if the nominal annual interest rate is 24% per year…
A: EAR is the effective annual rate of interest paid/received on a sum of money after taking…
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: An interest rate of 10% compounded semianually is equivalent to how many percent compounded…
A: Effective Annual Interest rate(EAR) refers to the real rate of return that we earn on our savings or…
Q: If the 3-month CD rate is 1.2% (annual) in Thailand and if the expected annual inflation is 5.7%,…
A: Real rate of return is the rate of return on n investment adjusted for inflation. Real return = 1…
Q: What is the future value of an investment that pays P2,500 at the beginning of each period with an…
A: In this we have to find out the future values of payments.
Q: What is effevtive interest rate per year for an investment of $50 at an interest rate of $5 per…
A: Following is the effective interest rate per year
Q: An interest rate of 12% per year, compounded monthly is equivalent to what nominal and effective…
A: The nominal interest rate can be defined as the rate of return on an investment with out any…
Q: What is the uniform annual equivalent if the interest rate is 7% per year?
A: Uniform Annual Equivalent Payment: It is one of the methods used in capital budgeting for the…
Q: What is the effective annual interest rate of an investment that pays 6.5% annual interest,…
A: EAR is the actual rate of return investment or loan generates after taking compounding into account.…
Q: If the annual interest rate is 19%, what is the quarterly interest rate? 4+ decimals
A: Data given Annual Interest Rate (i)= 19% Simple Interest Rate -To convert annual interest rate into…
Q: An interest rate of nominal 10% per year, compounded weekly, is
A: The nominal rate is the rate of interest an investment generates without taking the compounding…
Q: What is the effective annual rate of interest if $900.00 grows to $1200.00 in four years…
A: Using excel RATE function
Q: he discount factor corresponding to a 3-year continuously compounded interest rate is 0.765667. What…
A: The effective rate is the after considering the impact of compounding and always more than actual…
Q: What interest comp. monthly is equivalent to an interest rate of 16.3% comp. quarterly?
A: First, we need to convert Quaterly compounded rate to Effective Annual Rate So, 16.3% Compounded…
Q: What is the PV of a perpetuity paying $6 each month, beginning next month, if the monthly interest…
A: Present value of a Perpetuity is equal to the PMT / Annuity value divided by the rate of interest…
Q: If the compounding frequency is monthly and the discount factor=0.62026, what is the value of the…
A: Let i(12) denote monthly interest rate Discount Factor = 1/(1+i(12)) 0.62026 = 1/(1+i(12)) i(12) =…
Q: If the interest rate is 12% compounded quarterly, what is the interest rate per conversion period?
A: The conversion period for the interest rate is the period in which the interest rate gets…
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…
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Solved in 2 steps
- What interest rate, compounded monthly, is equivalent to a 10.04% effective interest rate?What is the nominal rate of interest compounded semi annually which is equal to 8.65% compounded quarterly in percent?What is the effective rate (annually compounded rate) of interest corresponding to 9% compounded quarterly? What is the equivalent monthly rate?
- what nominal rate of interest compounded monthly is equivalent to 12% per annum compounded quarterly?A nominal interest rate of 12% per annum compounded monthly is equal to what nominal interest compounded semi-annually?If the effective annual interest rate is 8%, what is the nominal annual rate if compounding is bi-monthly?
- What nominal annual discount rate compounded semiannually is equivalent to a nominal rate of interest of 12% compounded monthly?If the stated annual rate of interest compounded semi-annually is 12.5% then what is the equivalent monthly rate compounded monthly?if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest per bi month