Calculate the effective interest rate per month for an interest rate of 14% in continuously compounded account?  a. 1.488% b. 1.258% c. 1.671% d. 1.174%

Q: What is the number of months required for a deposit of $1320 to earn $16.50 interest at 3.75%?

A: Deposited amount or principal balance is $1320 Interest earned is $16.50 Interest rate is 3.75% To…

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: Explain the meaning of a 20% annual percentage rate (APR) quotedby the credit c.ird company? And how…

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Q: Which of the following has the most effective annual rate of interest? 12.15% compounded…

A: Effective Annual Rate of Interest: An effective annual interest rate is the true return on a savings…

Q: You are told the effective interest rate on an account is 3.9%, if the interest is compounded…

A: Effective interest rate takes into consideration the compounding frequency. Annual percentage rate…

Q: Assuming a 360-day year, when a $9,300, 90-day, 6% interest-bearing note payable matures, total…

A: Note payables means an instrument acknowledging the debt due from company to outsider after certain…

Q: Find the loan principal. Rate Time (Days) Interest Principal 12% 140 $11.40 ? The loan principal is…

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Q: Find the interest rates in the following situations. a. APR = 7%, compounded monthly. Find the…

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Q: Considering an interest rate i=14% per year, what is the compound interest rate equivalent to the…

A: Interest rate is 14% per year To Find: Equivalent compounded  interest rate for 45 days Equivalent…

Q: PART 1 (INTEREST RATES) 1. For an interest rate of 9% per year, compounded every 4 months, determine…

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Q: ics 3 parts (6-8) Calculate the yearly effective interest rate if an investment is paid 2% interest…

A: Effective interest rate is the rate of interest earned by the investor yearly. If the investor…

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: The effective annual rate (EAR) for a savings account with a stated APR of 4% compounded daily is…

A: Effective Annual Interest Rate Effective annual interest rate refers to the actual rate of interest…

Q: Suppose that you deposited $1,000 in a savings account at the beginning of a year where the annual…

A: Deposit = $1,000 Annual interest rate = 18% Compounding = monthly

Q: If you borrow $7,500 at $550 interest for one year, what is your effective interest rate for the…

A: The effective rate of interest refers to the return on savings or interest on the investment…

Q: Assuming a 360-day year, when a $17,100, 90-day, 8% interest-bearing note payable matures, total…

A: The note payable is issued to creditor as a promise to pay in future.

Q: what simple interest rate is equivalent to the discount rate of 8.865% in discounting P52, 943 due…

A: Interest is a value at which additional amount is computed while doing or receiving the payment. It…

Q: What nominal rate of interest, compounded quarterly

A: To calculate the nominal rate of interest compounded quarterly over the first ten years, we need to…

Q: If the annualized cost of the trade credit discount is 7.37%, what is the net trade credit period?…

A: Trade credit is a form of financing provided by suppliers to their customers. It allows customers to…

Q: bank offers personal loans at 4.7%p.a compounding monthly. The effective annual rate of interest…

A: Effective rate is rate of return after consider the impact of compounding on that and is more than…

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: A bank quotes you a nominal interest rate of 12%, compounded monthly, on a savings account. What is…

A: Monthly nominal interest rate (r) = 0.01 (i.e. 0.12 / 12)Number of compounding in a year (n) = 12…

Q: d the equivalent interest rates to the given nominal interest rates. a. Nominal interest rate…

A: Nominal interest rate is the simple interest without considering the impact of compounding on the…

Q: Find the size of the monthly bank payment: P=$75,000 interest= 7 3/4% time= 4 months

A: Using excel PMT function

Q: Effective annual interest rate: Find the effective annual interest rate (EAR) on each of the…

A: Effective annual interest rate (EAR) refers to the real rate of return that we earn on our savings…

Q: If a bank decided to charge you 7.70% compounded monthly, what is the effective annual rate? Round…

A: EAR, Effective Annual Rate- = {(1 + APR)/m}^m } - 1

Q: Given the annual interest rate and a line of an amortization schedule for that loan, complete the…

A: Solution:- When a loan is taken, it can either be repaid as a lump sum payment or in installments.…

Q: Calculate the missing information for the loan. Round percents to the nearest tenth and days to the…

A: We need to use simple/ordinary/exact interest formula to solve this problem Simple interest(exact)…

Q: When $8,600 is invested in a savings account paying simple interest for the year, the interest, i in…

A: Given information,The equation i = 8,600r represents a simple interest calculation. It states that…

Q: An interest rate of 10% compounded monthly is given, compute for the interest rate per perio 0.83% O…

A: Interest Rate per period = Annual interest rate / no. of compounding period

Q: Calculating Interest Using 360 days as the denominator, calculate interest for the following notes…

A: Interest is calculated on the original principal amount. interest is the cost of money which…

Q: Maturity Value (in $) Rate Time Interest rincipal Interest (%) (days) Method $3,500 168 Exact $220…

A: Solution: Maturity value = principal + interest  = 3500 + 220  = $3,720

Q: QUESTION 4 Bank B quotes an interest rate of 7.39% per quarter, compounded monthly. It is equivalent…

A: Effective rate of return is return after considering the impact of compounding on interest.

Q: If the interest rate is stated as 2.2% per 6 months compounded continuously, the effective annual…

A: Here, Interest Rate Per 6 Month is 2.2% Therefore, Annual Interest Rate is: =2.2% ×2=4.4%…