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: What is the effective annual rate (EAR) if the stated rate is 8 percent and compounding occurs…
A: In this question we need to calculate the effective annual rate (EAR).
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 future value of $875 deposited for one year earning an 8 percent interest rate annually?
A: Future value can be described as the future worth of a specific amount at a certain future date.It…
Q: if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: a. For an interest rate of 18% per year compounded continuously, calculatethe effective monthly and…
A: We are allowed to answer one question at a time. We’ll answer the first question since the exact one…
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 is the present equivalent of $18,000 to be received in 15 years when the interest rate is 7%…
A: The Present Value of an investment is the present worth of a future amount to be received at a…
Q: If the current rate of interest is 6% APR, what is the future value of an investment that pays…
A: Interest rate = 6% Payment every two years = AED 15,000 Future value period = 20 Years
Q: What is the future value of $2,500 deposited for one year earning a 14 percent interest rate…
A: In the given question we require to compute the future value of investment from following details:…
Q: What is the present equivalent of $ 180,000 to be received in 15 years when the interest rate is 7%…
A: Time value of money (TVM) means that the amount of money received in the present period will…
Q: If the nominal rate is 16.5% per year compounded quarterly, what is the equivalent effective rate of…
A: Since you have asked a question with multiple parts, we will solve the first 3 parts as per policy.…
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: What is the effective annual rate of interest if $1200.00 grows to $1500.00 in two years compounded…
A: Effective Annual Rate: It is the real rate of return paid on a loan or earned on an investment,…
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 $14,000 is borrowed for 2 months and $82 is paid, then the annual simple interest rate is ____
A: Interest = p * r * t Interest = $82 principal = $14,000 r = rate of interest t = time in years = 2…
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: How long will it take money to triple itself if invested at 8.35% compounded quarterly? What is the…
A: The number of years it will take for the money to triple can be computed with the help of NPER…
Q: What is the present value of $10,000 to be received two years from today assuming an annual interest…
A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…
Q: With an interest rate of 15 % how long does it take for an invest- ment to quadruple, if the…
A: Future Value formula with periodic compounding i.e. annual, monthly, semi-annual or quarterly…
Q: Find the effective annual interest rate r of the given nominal annual interest rate. Round your…
A: Effective interest rate is interest rate considering the impact of compounding on interest rate.
Q: f the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate…
A: Nominal rate = 11.5% compounded continuously We need to find bi-monthly rate, where there are 24…
Q: What will be the future worth of series of 15 annual $100 payments if the nominal annual interest…
A: An interest rate method in which current interest is computed by multiplying the interest rate by…
Q: What is the equivalent simple interest (yield) for an investment of 8 % compounded quarterly? Round…
A: Effective Annual Rate The effective annual rate of interest is the actual or the real rate of…
Q: What is the present value of an investment in which the interest rate is 3.9% per year, compounded…
A: The time value of money is the idea that the value of money received today will be more worthy than…
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: For an interest rate of 2% per month, find (a) the effective rate per quarter, and (b) the effective…
A: The effective interest rate is the rate that is charged by the lender from the borrower for the cost…
Q: What is the effective annual rate for an APR of 15.70 percent compounded monthly?
A: The effective annual Rate will be computed according to the formula..... i=(1+rm)m−1.. Where rm…
Q: What is the monthly payment to repay a 10 year loan of $200,000 at a nominal rate of 15% per year if…
A: For this solution we need to consider the quarterly interest rate and quarter period and calculate…
Q: An effective annual interest rate of 35% has been determined with continuous compounding. What is…
A: The nominal interest rate refers to the interest rate before taking inflation into account. The…
Q: What is the effective annual rate (EAR) for an APR of 10.90 percent compounded quarterly?
A: APR= 10.9% Compounded = Quarterly Find out Effective annual rate (EAR) Then for Quarterly APR=…
Q: If the interest rate is stated as 2.2% per 6 months compounded continuously, the effective annual…
A: Here, Interest Rate Per 6 Month is 2.2% Therefore, Annual Interest Rate is: =2.2% ×2=4.4%…
Q: Given an interest rate of 6.5 percent per year, what is the value at date t = 8 of a perpetual…
A: Annual interest rate = 6.5% Annual payment = $ 900
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: What is the effective annual interest rate for 10.5% compounded (a) Semiannually ? (b) quarterly…
A: Note: Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: A series of equal quarterly payments of $6,000 for IO years is equivalent to what present amount at…
A: Formula used to compute present equivalent worth: Formula to compute effective interest rate:
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 future value of $850 deposited for one year earning an 10 percent interest rate…
A: The future value is the instalment payment of fixed amount at a certain date in the future with a…
Q: If the interest rate is 9.3% compounded continuously, what is the required quarterly payment torepay…
A: Interest rate= 9.3% compounded continuously Loan amount (P0)= $15,000 Period = 8 years Required…
Q: What is the effective annual rate on an investment that pays an interest rate of 8.25% continuously
A: in this we have to calculate the exponential form and find out effective interest rate.
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: 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: How much is ₱1,200 worth at the end of 1 year if the interest rate of 5.5% is compounded quarterly?
A:
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- 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?For an effective interest rate of 16% per annum, what is the equivalent nominal annual rate compounded semiannually? And quarterly ?And monthly ?If the nominal rate is 16.5% per year compounded quarterly, what is the equivalent effective rate of interest per three years
- What is the effective annual interest rate when 12% per year is compounded quarterly? 0.13 or 0.23?if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest per two years?if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest per bi month
- If the nominal rate of interest is 10% per annum and there is quarterly compounding, the effective rate of interest will be:What is the effective annual interest rate of an investment that pays 6.5% annual interest, compounded quarterly?If the effective annual interest rate is 8%, what is the nominal annual rate if compounding is bi-monthly?
- What is the effective annual rate of interest if $900.00 grows to $1200.00 in four years compounded quarterly?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 AnnuallyA nominal interest rate of 12% per annum compounded monthly is equal to what nominal interest compounded semi-annually?