What is the effective rate (annually compounded rate) of interest corresponding to 9% compounded quarterly? What is the equivalent monthly rate?
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What is the effective rate (annually compounded rate) of interest corresponding to 9% compounded quarterly? What is the equivalent monthly rate?
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?What is the nominal rate of interest compounded semi annually which is equal to 8.65% compounded quarterly in percent?What interest rate compounded monthly is equivalent to an interest rate of 14% compounded quarterly?
- If the stated annual rate of interest compounded semi-annually is 12.5% then what is the equivalent monthly rate compounded monthly?Determine the annual rate of interest compounded daily that is equivalent to 9% per annum compounded monthlyAn interest rate is quoted as 3.75% per year compounded quarterly, what is the effective daily rate?
- 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 rate of interest is 12% compounded annually, find the equivalent rate of interest if it is compounded quarterly.What is the corresponding effective interest rate of 18% compounded semi-annually?
- An interest rate is quoted as 3.75% per year compounded quarterly, what is the effective semi-annual rate?Find the nominal rate compounded monthly equivalent to the rate of interest of 8 % compounded quarterly.Determine the nominal rate of interest compounded quarterly which is equivalent to 6.3% compounded semi-annually.
