Q: If the effective annual interest rate is 15% then what is the equivalent annual rate compounded…
A: Effective annual interest rate = (1 + (nominal rate / number of compounding periods)) ^ (number of…
Q: 6. Which of these gives the lowest effective rate of interest? A. 12.35% compounded annually B.…
A: The effective rate of interest The effective rate of interest may be a useful concept also called…
Q: If the stated annual rate of interest compounded semi-annually is 12.5% then what is the equivalent…
A: Equivalent interest rates are interest rates that produce the same return as the given annual…
Q: A saving account earns compound interest at an annual effective interest rate i. Given that d12,41 =…
A: EAR=1+RMM-1
Q: 4. The monthly interest rate on a savings account is 1%, compounded monthly. The effective annual…
A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…
Q: A lending institution charges interest at the rate of 3.5% per quarter, a. What is the nominal…
A: Interest rate per quarter = 3.5% a. What is the nominal interest rate? Nominal interest rate…
Q: What interest rate, compounded monthly, is equivalent to a 10.04% effective interest rate?
A: Effective interest rate : In simple words, the actual rate of return that an individual receives…
Q: Q7-3. If interest is compounded more than once a year, will the effective interest rate be higher…
A: Let the nominal interest rate = r Compounding frequency = m
Q: effective interest rate on a loan
A: Effective interest rate refers to the return on the savings account at the time compounding effects…
Q: What nominal interest rate compounded semi-annually is equivalent to j52 14%?
A: Nominal Interest rate Nominal interest rate refers to the simple annual interest rate without…
Q: What is the nominal annual rate of interest compounded semi-annually if deposits of $225 made each…
A: Future value of Annuity= PMT (1+i)((1+i)^n-1)/i PMT= periodic payment= 225*6=$ 1350 i= Interest rate…
Q: A certain nominal annual interest rate has an effective rate of 19.722% when compounded…
A: In order to convert, periodically compounded rate to a continuously compounded rate we use LN…
Q: ective rate of interest on an investment is 5.52%, what is the nominal rate of interes nded monthly?
A: Solution:- Effective rate of interest means the net interest rate for the year after effect of all…
Q: 1. It is the amount paid or earned for the use of money. A. Principal 2. What is the equivalent…
A: 1) Borrowed amount is the principal with some predefined interest rate for some duration.
Q: What is the equivalent effective rate of interest compounded quarterly if the ne is 19.5%? O 20.97%
A: Effective rate is interest rate after considering the effect of the compounding and while nominal…
Q: 3. If the nominal rate of interest is 10% per annum and there is quarterly compounding, the…
A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…
Q: The effective interest rate when the nominal interest rate of 24% compounded monthly is given by O…
A: Nominal interest rate is the interest rate which is not adjusted for inflation and compounding…
Q: 3a. You are paying an effective annual rate of 18.974 percent on your credit card. The interest is…
A: Solution:- Effective annual rate means the net interest rate for an year, after effect of all the…
Q: Method A assumes simple interest over nal fractional periods, while Method B assumes simple discount…
A: Simple Interest vs. Simple Discount In case of Simple Interest, the Interest is calculated on…
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: 8%pa interest compound monthly What is Annual effective rate?
A:
Q: Find the effective rate of annual interest 9% that paid quaterly. a. 9.5% b. 9.3% c. 9.10% d. 9.0%
A: Given Details: Normal Interest Rate= 9% Compounding = Quarterly
Q: An interest pays 1% interest rate, calculate the nominal rate of interest compounded weekly?
A: Interest rate can be defined as the percentage rate at which the interest over the investment or…
Q: Determine the nominal interest rate compounded continuously corresponding to an effective interest…
A: Effective interest rate (EAR) = 12% Mathematics constant (e) = 2.7182818284590452353602874713527…
Q: An interest pays 1% interest rate, calculate the nominal rate of interest compounded weekly? 52% 32%…
A: A compounding is the interest charged on interest. When any investment is made for certain years,…
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: Please do not use excel format in computation A debt of P25,000 was repaid in ten equal quarterly…
A: Debt is the value which is borrowed from other sources like banks for the period and this amount is…
Q: ) An interest rate of 5% compounded quarterly is equivalent to what rate compounded monthly?
A: Using excel Effective and Nominal Rate function
Q: Calculate the effective interest rate per month for an interest rate of 14% in continuously…
A: Effective annual rate (EAR) refers to a real interest rate which an investor is expect from his…
Q: 4- Bank America offers a stated annual interest rate of 5.0 percent, compounded quarterly, while…
A: To understand in which bank you should deposit your money, we need to calculate Effective interest…
Q: 4. The monthly interest rate on a savings account is 1%, compounded monthly. The effective annual…
A: In the given question we require to calculate the effective annual rate from the monthly interest…
Q: What is the annual percentage rate on a loan with a stated rate of 2 percent per quarter? A. 2.00…
A: In the given question we require to calculate the annual percentage rate on a loan if the stated…
Q: An amount of 5 million is placed on deposit from 17 August to 31 December at 6.7%. What would be the…
A: As posted multiple independent questions we are answering only first question kindly repost the…
Q: Identify the following interest rates as nominal or effective. Rate 1: 1.5% per quarter Rate 2: 1.5%…
A: Effective interest rate is computed by adjusting the nominal interest rate for the number of…
Q: Calculate and compare the effective rates of interest for saving accounts paying: (a.) a nominal…
A: Formula for computation of effective rates is as follows:Effective rates=1+rmn-1where,r=Interest…
Q: f the stated annual rate of interest compounded annually is 8% then what is the equivalent annual…
A: Nominal Interest rate is 8% No. of compounding periods are 365 To Find: Equivalent annual rate…
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: What is the nominal annual interest rate if the effective annual rate is 8.1% and compounding is…
A: Note: As per our guidelines, we can only answer one question at once. Please post other question…
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: An interest rate obtained by dividing the nominal rate per year by the number of compounding periods…
A: An effective interest rate is defined as an interest rate on loan or some other financial product,…
Q: f the bank advertises 10.21% accounts that yield 9.84% annually. Find how often is the interest…
A: Given: Annual Percentage Rate: 10.21%Effective Annual Rate: 9.84% Required :Compute how often the…
Q: 7. Fill in the table by calculating the APR (effective interest rate). Nominal Int. Rate Compound…
A: APR or the effective interest rate is different from the nominal interest rate. This is because APR…
Q: What nominal interest rate compounded quarterly is equivalent to j∞=j∞= 7%?
A: Nominal Interest Rate: This percentage increase in the amount of money you pay the lender in…
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…
2.) What nominal rate compounded monthly is equivalent to 11% effective interest?
A.) 10.48% B.) 11.48% C.) 12.48% D.) 13.48%
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- 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 monthlyAn account pays 7% annual interest compounded monthly. What is the effective interest rate on this account? note: show your answer in percent and to two decimal points. For example, input 12.126% as 12.131.If the nominal rate of interest is 48% compounded bi-monthly, find the rate of interest per period? 2.If the rate of interest is 8% compounded quarterly, find the nominal rate of interest.
- What is the nominal rate of interest compounded semi annually which is equal to 8.65% compounded quarterly in percent?Determine the nominal rate of interest compounded quarterly which is equivalent to 6.3% compounded semi-annually.A 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%
- 3. An interest rate is quoted as being 7.5% compounded quarterly. What is the effective annual interest rate? (ME board).If i 5.8% per semiannual, compounded monthly, What is the nominal quarter rate. (ABET, SO1)The effective rate of the interesthnat is equivalent to a 3% rate compounded monthly is: O 3.04 % O 1.00 % O 0.50 % O 2.01 % O 6.09 %
- When compounded quarterly P12,000 becomes P 20,415.23 after 4 yrs. What is the nominal rate of interest?Determine the nominal interest rate compounded continuously corresponding to an effective interest rate of 12% per year. Select one: a. 11.33% b. 11.75% c. 10.68% d. 10.25%Determine the effective rate of interest of the following nominal rates. a. nominal rates (Compounded annually) b. nominal rates (Compounded quarterly) c. nominal rates (Compounded continuously) nominal rate = 0.14