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What is the monthly interest rate for a fixed interest rate of 12% per annum?
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1%
12%
12.68%
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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?Considering an interest rate i=14% per year, what is the compound interest rate equivalent to the following periods. a) 45 days b)72 daysWhat is the effective interest rate per payment period for an interest rate of 12% compounded monthly when the payment is quarterly ? Select one: a.0.06 b. 0.5 c. 0.12 d. 0.4 e.0.03
- What annual interest rate is earned by a 20-week T-bill with a maturity value of $2,900 that sells for $2,863.64? The annual interest rate is %??What is the effective annual interest rate if the nominal annual interest rate is 24% per year compounded monthly? a. 2.00% b. 24.00% c. 26.82% d.27.12%What is the annual interest rate earned by a 33-day T-bill with a maturity value of $1,000 that sells for $996.16? (Use 360 days for a year)
- The effective annual interest rate is 15%. A) Assume interest is compounded monthly. What is the monthly interest rate? ((1+15%)^1/12)-1= 1.17% ^ is this correct?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 AnnuallyIf the nominal or headline rate of interest is 24%, what is the effective annual ratei. semi-annuallyii. quarterly Answer both.
- What is the present value of a debt of $1,245 to be paid in 24 months, at a discount rate of 10% per year? Question 4 options: 996 1297 1037 1323Compute the nominal interest rate per annum payable monthly that is equivalent to the simple interest rate of 7% p.a. over a period of three months. could you please explain this questions im really struggling with if i need to convert the simple interest to a effective annualk interest and to how to reach the answer 6.96%(a) What is the simple interest on ₱ 30,000 for six months at a simple interest rate of 12% (b) What is the compound interest if the same investment is compounded quarterly? (c) Obtain the difference. Note: please find also the compound amount and compound interest