Calculate the nominal interest p.a.compounded daily that is equivalent to 3.7%p.a. compounded quarterly. (Correct youranswer to the nearest 0.01%, e.g. 2.12%)Answer:

The equivalent annual interest rate is calculated by

Answered: Calculate the nominal interest p.a.…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

If you borrow $7,300 at $800 interest for one year, what is your effective interest rate for the following payment plans? Note: Input your answers as a percent rounded to 2 decimal places. a. Annual payment b. Semiannual payments c. Quarterly payments d. Monthly payments Effective Rate of Interest % % % %
Saved What is the effective interest rate corresponding to a nominal annual rate of. (Round your percentage answers to 2 decimal places.) 3. 6.8% compounded semiannually? b. 6.82 compounded quarterly? C. 6.8% compounded monthly?
An 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 12.13
Use the compound interest formula to solve. (Round your answers to the nearest cent.) Principal Time Period(years) NominalRate (%) InterestCompounded CompoundAmount CompoundInterest $400 5 1.5 monthly $ $
Calculate the simple interest earned. Round to the nearest cent. P = $4700, r = 7%, t = 1 year
If i= 14.8% per year, compounded monthly, What is the effective interest rate per semiannual? (ABET, S01) Select one: Oa. 15.85% Ob. 7.63% O c. 7.4% O d. 1.23% Oe. 7.91%
Calculate the present value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1. PV of $1. FVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) 1. 2. 3. Annuity Payment $ 5,600 10,600 4,600 Annual Rate Interest Compounded Semiannually 9.0% 10.0% Quarterly 11.0% Annually Period Invested 3 years 2 years 5 years Present Value of Annuity
You are told the effective interest rate on an account is 2.1%, if the interest is compounded continuously. What is the annual percentage rate for the account? Give your answer to four decimal places. The annual percentage rate is 2.1222 %.
The nominal interest rate compounded quarterly, ¿(4) is 6%. Let ¿ be the annual effective interest rate, d be the annual effective discount rate, d(12) be the nominal discount rate compounded monthly and be the annual constant force of interest. Calculate i + 2d + 3d(¹2) + 46. A 59.14% B 59.34% C 59.54% D 59.74% E 59.94%
Compute for the effective interest rate per seminannual. Nominal rate = 7.43% compounded bi-monthly
A. Calculate the effective annual rate (EAR) in each of the following scenarios: b. APR = 10%, monthly compounding c. 4% semi-annual interest rate, monthly compounding d. 1.5% monthly interest rate, daily compounding e. 3% quarterly interest rate, annual compounding
Calculate the future value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1. PV of $1, EVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) 1. Annuity Payment $ 3,700 Annual Rate Interest Period Compounded Invested Future Value of Annuity 7.0% Semiannually 9 years 2. 6,700 8.0% Quarterly 5 years 3. 5,700 12.0% Annually 6 years

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

Calculate the nominal interest p.a. compounded daily that is equivalent to 3.7% p.a. compounded quarterly. (Correct your answer to the nearest 0.01%, e.g. 2.12%)