Q: Which of the following compounding rates is equivalent to an effective interest rate of 2.75% p.a.…
A: The effective interest rate also referred to as the annual equivalent rate or the effective rate is…
Q: .If $1000 is deposited at 12.5% p.a. for one year, what is the effective annual interest rate if…
A: Given, The amount deposited is $1000 The annual rate is 12.5%
Q: 4. Compute the effective annual interest rate in each of the following situations a. 5.75% nominal…
A: a. Convert 5.75% compounded quarterly to its equivalent interest rate for annual interval. Here, 'R'…
Q: If the nominal interest rate is 16.75%, find the effective ual rate with quarterly compounding.…
A: Because you have posted multiple questions, we will answer only the first question and if you want…
Q: If i= 14.8% per year, compounded monthly, What is the effective interest rate per semiannual? (ABET…
A: Lets understand the basics For calculating semi annual interest rate from monthly compounded…
Q: 21. Find the number of interest periods to achieve the conditions set forth. A= $6000; P =$1000;…
A: Compound Interest is the widely used interest charging method. In this method, one earns interest on…
Q: Which one is the approximate periodic interest rate % on a Treasury bill that you purchase for 4,908…
A: A risk-free short-term debt that is issued by the government, and supported by the treasury…
Q: If you are expecting to get OMR 56775 at the end of 3 years. Calculate its present value if the…
A: When interest is compounded multiple times: Present value = Future value/(1+r/m)n*m r is interest…
Q: $445.30 per month __________years 7.45 % compounded quarterly Not Applicable $24,788.40…
A: Compound interest is the interest on interest. I n this method the amount of interest is…
Q: Percentages need to be entered in decimal format, for instance 3% would be entered as .03 in cell…
A: Hi, since the question has multiple sub-parts, I will answer the first 3, as per the company's…
Q: What is the effective annual rate (EAR) for a nominal rate (monthly compounding) of 9.00%? 9.4130%…
A: Nominal rate = 9% Compounding = monthly
Q: What compound interest rate j12 is equivalent over 10-year period to a compound interest rate of…
A: The compound interest is an important element of the future value of money. It refers to the…
Q: 9. Camilla wishes to compute the effective annual rate of a financial instrument with stated annual…
A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…
Q: Calculate the simple interest rate when P= $3600 , I = $160 and t = 4 months . Round to the nearest…
A: Given information: Principal amount is $3,600 Interest amount is $160 Time period is 4 months
Q: Which of the following compounding rates is equivalent to an effective interest rate of 2.75% p.a.?
A: When the compounding frequency per year is not 1 then in that case the stated interest rate will not…
Q: Determine the future value of the following single amounts: Invested Amount…
A: Future value: This is the amount of present value accumulated or compounded at a rate of interest…
Q: 1. The semiannual interest rate equivalent to an effective monthly rate of 0.90% is equal to_ 2.…
A: In this problem we have to calculate effective interest rate and nominal interest rate.
Q: If the annual interest rate is 12.9% and the dollar amount compounds daily, you would ( a. multiply…
A: Data given: Annual Interest rate=12.9% compounded daily. (Annual means N=1 year)
Q: Using Table 11-1, calculate the compound amount and compound interest (in $) for the investment.…
A: We need to use following equation to solve this problem with the help of table given below Compound…
Q: What rate of interest (in %) compounded quarterly will yield an effective interest rate of 8.6%?…
A: Effective Annual Rate: The effective annual rate of interest is the actual or the real rate of…
Q: (a) Find the present value of a payment of £500 made after 3 months using a simple rate of discount…
A: The concept of the time value of money is used to find out the actual value of money based on the…
Q: Find the simple interest. Assume the rate is an annual rate. Assume 360 days in a year. Principal…
A: Solution:- Interest means the earnings made by depositing an amount somewhere for a period of time.…
Q: E6.1 (LO 1) (Using Interest Tables) For each of the following cases, indicate (a) to what rate col-…
A: Rate of Interest Number of Periods 9% 9 3% 20 5% 30
Q: A saving account earns compound interest at an annual effective interest rate i. Given that d12.41 =…
A: EAR =1+RMM-1
Q: What is the future value of 15 periodic payments of $39,000 each made at the end of each period and…
A: Time Period = 15 Years Payment = $39,000 Interest Rate = 8%
Q: FOLLOWING QUESTIONS: 1. Consider that the number of periods and the amount of equal installment…
A: Present Value of Notes Payable While calculating the present value of the notes payable which needs…
Q: What is the rate of interest if P40000 earned interest of P1200 in 140 days? (А) 2% (в) 7.82% c)…
A: Principal amount = P40000 Interest amount = P1200 Period = 140 days = 140/365 = 0.383561643835616
Q: When compounded quarterly P12,000 becomes P 20,415.23 after 4 yrs. What is the nominal rate of…
A: Present value (PV) = P12000 Future value (FV) = P20,415.23 Period (t) = 4 Year Number of compounding…
Q: Find the exact simple interest on P 10,000.00 for the period from January 12 2016 to November 23…
A: Calculate the simple interest of the initial 2 years (SI 2 Year) from January 12, 2016 to January…
Q: As usual you must show working for your answers. nal answers for the following as percentages to 3…
A: Annual Percentage Yield(APY) refers to the annual interest rate earned on the investment when the…
Q: . An interest rate is quoted as being 7.5% compounded quarterly. What is the effective annual…
A: Using the effect function in excel
Q: 10. If P 11 200 is the present value of P 13 700 due at the end of 16 months, find a. discount…
A: compounding formula: fv = pv×1+rn fv = future value pv = present value r=rate n = number of years…
Q: diagram shown, solve for F, using an interest rate of 1 per month. F = ? 012 3 4 5 6 7 8 9 10 11 12…
A: Interest Rate = 1.1% per month Effective Rate per quarter = (1+Interest per month)Number of months…
Q: the stated annual interest rate is 11% and the frequency of compounding is daily, the effective…
A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…
Q: What monthly rate of interest will yield an annual effective rate of interest of 14%? a.…
A: Given : Interest rate = 14%
Q: Suppose that an investment promises to pay a nominal 9.6 percent annual rate of interest. What is…
A: Given information: Rate = 9.6% The effective annual interest rate is the real return paid on savings…
Q: What is the effective interest rate per payment period for an interest rate of 12% compounded…
A: The effective rate per period is the rate per period when the nominal rate is compounded at a…
Q: Find the simple interest. (The rate is an annual rate unless otherwise noted. Assume 360 days in a…
A: The simple interest is based on the principal amount, the interest rate, and the time period.
Q: "Nominal and Effective Interest Rates" For an interest rate of 2% per quarter, determine the…
A: In this we have to find out annual effective rate for all given conditions.
Q: Assume an effective compound interest rate i = 3% per annum. Compute the following equivalent rates.…
A: Effective annual rate is the interest actually earned on the investment or paid on the loan, as a…
Q: nominal rate of interest is 10% per annum and there is quarterly compounding, the effective rate of…
A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…
Q: 13. A fixed income instrument with a stated annual interest rate of 18% and offers monthly…
A: Effective annual interest rate(EAR) refers to the real rate of return that we earn on our savings or…
Q: Which of the following nominal rates will earn the most interest? O 5% compounded quarterly (j4). O…
A: The nominal rate of interest refers to the rate of interest on investment without considering the…
Q: What is the effective annual interest rate of an investment that pays 6.5% annual interest,…
A: The effective annual rate of interest is the real return on the savings account when the effects of…
Q: 1. What effective interest rate is equivalent to 14 % per year, compounded semi- annually? Answer:…
A: Effective Interest Rate (EIR) is considered as the actual cost paid for a loan. Interest rate of…
| a. |
1.14%
|
|
| b. |
1.08%
|
|
| c. |
1.10%
|
|
| d. |
1.17%
|
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- 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?which one is correct please confirm? QUESTION 38 What monthly rate of interest will yield an annual effective rate of interest of 14%? a. 1.14% b. 1.17% c. 1.10% d. 1.08%What 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
- Suppose that an investment promises to pay a nominal 9.6 percent annual rate of interest. What is the effective annual interest rate on this investment assuming that interest is compounded (a) annually? (b) semiannually? (c) quarterly? (d) monthly? (e) daily (365 days)? (f ) continuously? (Note: Report your answers accurate to four decimal places –e.g., 0.0987 or 9.87%.)which one is correct please confirm? QUESTION 31 What is the effective rate of interest on a CD that has a nominal rate of 9.5 percent with interest compounded monthly? a. 9.86% b. 9.93% c. 10.02% d. 9.74%Compute 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%
- 20. Suppose that an investment promises to pay a nominal 9.6 percent annual rate of interest. What is the effective annual interest rate on this investment assuming that interest is compounded (a) annually? (b) semiannually? (c) quarterly? (d) monthly? (e) daily (365 days)? (f) continuously? (Note: Report your answers accurate to four decimal places e.g., 0.0987 or 9.87%.)N2 An amount of $45,560 will provide 9 years of payments of $1,776.80 at the end of every 3 months. Find the corresponding interest rate as a percentage with 2 decimals, e.g., 9.87 a) What is the monthly compounded nominal rate? Mode N= P/Y= Rate = b) What is the effective rate?What is the future value of $90,380.00 given an interest rate of 17.00% compounded quarterly for 37years? a. $30, 126,537.59 b. $42, 788, 765.48 c. $169, 361.93 d. $132,823.81
- Q5 A loan is offered with monthly payments and a 14.25 percent APR. What’s the loan’s effective annual rate (EAR)? (Do not round intermediate calculations and round your final answer to 2 decimal places.) EFFECTIVE ANNUAL RATE?Calculate the annual force of interest which is equivalent to an effective rate of interest of 1.9% per 2 months. only correct answer = 11.29305Calculate the annual force of interest which is equivalent to an effective rate of interest of 1.9% per 2 months. (correct answer = 11.29305) (no tables please, ONLY FORMULAS)
