What is the effective interest rate corresponding to a nominal annual rate of. (Round your percentage answers to 2 decimal places.) 6.8% compounded semiannually? 6.8% compounded quarterly? 6.8% compounded monthly? a. b. C.
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- 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?What is the nominal rate of interest compounded semi annually which is equal to 8.65% compounded quarterly in percent?Which of the following has the most effective annual rate of interest? A. 12.50 % compounded annually B. 11.95% compounded quarterly C. 12.15% compounded semi-annually D. 11.88% compounded monthly
- A 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%)An interest rate is quoted as 3.75% per year compounded quarterly, what is the effective daily rate?An interest rate is quoted as 3.75% per year compounded quarterly, what is the effective semi-annual rate?
- 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 monthA certain nominal annual interest rate has an effective rate of 19.722% when compounded continuously. What is its effective rate if compounded bi-monthly? A. 19.87% B. 18.45% C 18% D. 19.41%
- What is the effective annual rate (EAR) for an annual percentage rate (APR) or a nominal annual rate of 12%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily? Compounded hourly?If the effective annual interest rate is 9.58% and the nominal annual rate is 9.25%, compounding is: a. Monthly b. Bi-monthly c. Continuous d. Semi-annual e. QuarterlyDetermine the annual rate of interest compounded daily that is equivalent to 9% per annum compounded monthly