Q: if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate…
A: Effective rate of interest is rate which is computed after taking into account all the compounding…
Q: What is the effective annual rate (EAR) if the stated rate is 8 percent and compounding occurs…
A: In this question we need to calculate the effective annual rate (EAR).
Q: A geometric gradient that increases at f = 6% per year for 15 years is shown in the following…
A: The present value of the growing annuity is the current worth of a cash flow series growing at a…
Q: If the nominal rate of interest is 10% per annum and there is quarterly compounding, the effective…
A: The question is based on the concept for calculation of effective interest rate. Formula as :…
Q: What is the nominal rate if the effective rate is15.32% compounded semi-annually?
A: Effective annual rate (EAR) refers to a real interest rate which an investor is expect from his…
Q: Given the rate per compounding period, find r, the annual rate 0.25% per month
A: P =R / M Here P = Rate per compounding period R= Annual rate M=Times amount compounded
Q: Find the nominal rate, which if converted quarterly could be used instead of 12% compounded…
A: Let the nominal rate converted quarterly = r Semiannually compounded rate = i = 12% Compounding…
Q: At what per annum rate must $232 be compounded monthly for it to grow to $617 in 10 years?
A: EXCEL FORMULA:
Q: An interest of 8% compounded semi annually is how many percent if compounded quarterly?
A: Formula: Effective interest rate=1+rnn-1where,r=nominal raten=number of compounding periods in a…
Q: What effective rate is the equivalent to 15% compounded annually?
A: Effective annual Interest can be computed as follows. EAR = (1 + i/n)n – 1 Here i = Annual rate of…
Q: Given a 10% APR, what is the Effective Annual Rate, given quarterly compounding? _%
A: Effective rate = [ 1 + ( APR / Number of compounding per year ) ]Number of compounding per year - 1
Q: When will an investment of 4,000.00 double if the effective rate 8% per annum?
A: Solution : given investment P = 4,000 Effective annual rate r = 8% Amount A = 2P We know the…
Q: what nominal rate of interest compounded monthly is equivalent to 12% per annum compounded…
A: The nominal rate of interest is the rate of interest that is considered before taking inflation.
Q: What is the rate compounded semi-annually that results in $625 accumulating to $1100 in 42 months?
A: The compounded rate refers to the rate per period. In order to get the compounded rate the annual…
Q: How much will be the equivalent worth of ₱2M invested today for three years at a commercial rate of…
A: Investment amount (PV) = P 2,000,000 Annual interest rate = 10% Quarterly interest rate (R) = 10%/4…
Q: What is the effective annual interest rate of an investment that pays 7.6% annual interest,…
A: The effective annual interest rate is defined as the real return on any interest paying investment…
Q: If the initial investment is $200,000, what would be the nominal annual rate of interest compounded…
A: Interest is the cost of borrowing the money.
Q: What per annum nominal interest rate with interest compounded quarterly would be needed to achieve…
A: The present value function or concept can be used to determine the present value of a future sum or…
Q: "If the nominal rate is 12% compounded semi-annually, the annual percentage rate is higher than the…
A: The annual percentage rate is is nominal rate of interest I.e. 12%
Q: If a bank was offering a nominal rate of return of 12% compounded monthly, what is the annual…
A: Formula: Annual effective rate = ( 1 + r / N )N - 1 R = rate of return N = Period
Q: What is the future value at the end of year 2 of an income stream that starts out at $2400 per month…
A: Monthly Payout = 2400 Decreases by 75 Monthly Compounding Number of compounding periods = 12 Time…
Q: What annual rate of return is earned on a $3,300 investment when it grows to $7,100 in nineteen…
A: 4.11%
Q: What is the annual percentage yield (APY) for money invested at an annual rate of (A)4.66%…
A: A) The calculation of the APY is as follows: Hence, the APY for the money that is invested at an…
Q: An account pays interest at a nominal rate of 10% per year. Find the effective annual yield if…
A: In the above question we require to compute the effective annual yield from below details : Nominal…
Q: What is the effective rate equivalent of 15% compounded quarterly?
A: Interest rate (r) = 15% Number of compounding per year (m) = 4
Q: What annual rate of return is earned on a $1,000 investment when it grows to $2,700 in eight years?
A: Future value is the value of assets at a future date given a growth rate. This is used for financial…
Q: What is the annual percentage yield (APY) for money invested at an annual rate of (A) 4.37%…
A: APY (annual percentage yield) is used to estimate the potential gain from an investment or the final…
Q: What is the effective annual rate for an APR of 15.70 percent compounded monthly?
A: The effective annual Rate will be computed according to the formula..... i=(1+rm)m−1.. Where rm…
Q: Calculate the effective annual rate for 9.4% compounded quarterly.
A: We need to compute the effective annual rate in this question.
Q: What is the effective interest rate per quarter if the interest rate is 10% compounded monthly?
A: The real interest that an investor earns on the investment and a borrower pays on loan after…
Q: What is the annual percentage yield (APY) for money invested at an annual rate of 4.19% compounded…
A: Given data; interest rate = 4.19% compounded monthly. interest rate = 4.2% compounded quarterly
Q: What is the effective rate equivalent to 17% compounded quarterly?
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
Q: An investment provides a 1.25% return quarterly, its effective annual rate is
A: Effective Annual Rate = ( 1 + Rate of Interest)^4 -1
Q: A sum of money is invested at a rate of 7 percent per year compounded annually. How long it will…
A: Rule 72 refers to the rule which makes it a simple calculation for the person to determine that in…
Q: What is the effective annual rate (EAR) for an APR of 10.90 percent compounded quarterly?
A: APR= 10.9% Compounded = Quarterly Find out Effective annual rate (EAR) Then for Quarterly APR=…
Q: What is the annual percentage yield (APY) for money invested at an annual rate of 5% compounded…
A: Annual Percentage Yield (APY):APY is an effective annual return rate that takes compounding…
Q: If prices increase at a monthly rate of 1.5%, by what percentage do they increase in a year?
A: Solution:- Percentage increase in price means net increase in price after effect of all the…
Q: what is the equivalent percent of 20% compounded quarterly if converted to compounded monthly.
A: Interest rate (r) = 20% Number of compounding per year (n) = 4 Effective annual interest rate =…
Q: An interest rate of 12% per year, compounded monthly is equivalent to what nominal and effective…
A: The nominal interest rate can be defined as the rate of return on an investment with out any…
Q: What is the effective annual interest rate of an investment that pays 6.5% annual interest,…
A: EAR is the actual rate of return investment or loan generates after taking compounding into account.…
Q: Suppose that a company borrows $100,000 from investment pool at 14% compounded quarterly over 3…
A: The question is based on the concept of calculation of equivalent payout for loan amount and further…
Q: An interest rate of nominal 10% per year, compounded weekly, is
A: The nominal rate is the rate of interest an investment generates without taking the compounding…
Q: What is the effective annual rate on an investment that pays an interest rate of 8.25% continuously
A: in this we have to calculate the exponential form and find out effective interest rate.
Q: What rate, compounded monthly, is equivalent to 18% compounded quarterly? What rate, continuously…
A: Since you have posted multiple questions, we will answer the first one for you. If you want a…
Q: How many months does it take for a present sum of money to double if the nominal interest rate is…
A: The present value of a sum will be double when the interest accumulated on it will be equal to the…
Q: If 8% per year is compounded bi-annually, what is the effective annual rate?
A: The effective annual rate is the rate that has an annual compounding frequency. It is calculated to…
Q: What is the effective annual rate of 11.9 percent compounded continuously?
A: Effective annual rate is the interest rate which is derived at after considering the effect of…
What nominal rate per quarter is equivalent to an
effective rate of 12.7% per year, compounded
continuously?
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- What is the effective annual rate of 11.9 percent compounded continuously?What is the effective annualized rate compounded quarterly that is equivalent to 12.000% per annum compounded continuously?if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest per two years?
- if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest per bi monthFind the nominal rate compounded semi annually which is equivalent to 20% compounded quarterly. What is the corresponding effective rate?Find the nominal rate compounded monthly which is equivalent to 12% compounded quarterly. What is the corresponding effective rate?
- If the nominal rate is 16.5% per year compounded quarterly, what is the equivalent effective rate of interest per three yearsConsider an EAR of 13.75% with quarterly compounding. What is the APR ( annual percentage rate)?What is the effective annualized rate compounded continuously that is equivalent to 16.000% per annum compounded quarterly
- "If the nominal rate is 12% compounded semi-annually, the annual percentage rate is higher than the effective annual rate." TRUE OR FALSEWhat effective rate is the equivalent to 15% compounded annually?What is the annual percentage yield (APY) for money invested at an annual rate of 5% compounded continuously?