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Hello,
I am unsure how to calculate the interest rates for this quetsion:
Given that the annual rate compounded continuously is 12.5%, find the equivalent rate
per:
year compounded daily
monthly compounded monthly
year copounded every two years
Step by step
Solved in 3 steps with 2 images
- if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest a) per year b) per semiannual c) per bi month d) per quarter c) per two years Use the editor to format your answerThe discount factor corresponding to a 3-year continuously compounded interest rate is 0.765667. What is the corresponding continuously compounded interest rate? What is the corresponding quarterly compounded interest rate expressed at an annual rate?Suppose an annuity pays $2000 at the end of each 3 month period for 3.5 years at an interest rate of 4%, compounded quarterly a. find the total number of periods b. find the real interest rate per period c. find the present value (give the formula)
- You are told that the nominal rate of interest is 3.46% per quarter year payable monthly. Calculate the equivalent effective annual rate of interest.What is the nominal annual rate of interest compound monthly at which $1530.00 will accumulate to $1936.69 in two years and eleven months? Give the nominal annual rate of interest in percentage. Need only handwritten solution only (not typed one).An amount of $29,200 will provide 9 years of payments of $2,518.50 at the end of every 6 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?
- Find the effective rate of interest corresponding to a nominal rate of 3.4%/year compounded annually, semiannually, quarterly, and monthly. (Round your answers to two decimal places.) annually semiannually quarterly monthly Need Help? Read itAnswer the following Compound Interest problem using the provided formula ONLY. Show your complete solution. 11. Compound Interest What rate in percent compounded monthly is equivalent to 18% compounded semi-annually? 14. When compounded bi-monthly, P150,000 becomes P223,183 after 5 years. What is the nominal rate of interest?For a sum of 1,050 to triple itself in 8 years and 6 months, what must be the rate of interest compounded semi-annually? (Finding the rate by linear interpolation)
- Determine the simple interest. The rate is an annual rate. Assume 360 days in a year. p=$280, r=7.25%, t=2.75 years The simple interest is 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%.)Find the effective rate of interest corresponding to a nominal rate of 2.6%/year compounded annually, semiannually, quarterly, and monthly. (Round your answers to two decimal places.)