D Question 71 ptsWhat is the effective annual rate (EAR) for a nominal rate (monthlycompounding) of 16.2 %?SET YOUR CALCULATOR TO 4 DECIMAL PLACES THEN INPUT THENUMBER AS PERCENTAGE ROUNDING TO 2 DECIMALS. DO NOTENTER THE % SYMBOL..i.e. if your answer is 7.7711%, enter it as7.77.

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Answered: D Question 7 1 pts What is the…

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

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Problem 6-12 Calculating EAR [LO4] Find the EAR in each of the following cases: (Use 365 days a year. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Stated Rate (APR) Number of Times Effective Rate Compounded (EAR) 8.5 % 17.5 Quarterly Monthly % 13.5 Daily 10.5 Infinite
* 2.1 49 LM51% 10:42 PM ACTIVITY #8 Name: Year/Set: Subject: Score: Direction: Read and understand this module. Provide what is being asked. Write your answer on the space provided and use long bond paper (Hand Written) for problem solving A. Find the effective rate equivalent to: 1. 8% compounded quarterly 2. 12% compounded monthly 3. 11% compounded semi-annually B. Find the nominal rate compounded quarterly is equivalent to an effective rate of 4. 8% 5. 10% C. What nominal rate compounded semi-annually is equivalent to: 6. j= 9%, m = 1 7. j= 8%, m = 4 D. Solve the following problems: 8. Which is better, to invest money at 8% m = 4 or at 8 2%, m = 12? 9. Which is better, to deposit your money in a bank which credits an account at 6% compounded quarterly or at 6% compounded monthly? 10. If my time deposit earns 7% compounded quarterly will I change it to 7 2% effective? End of gth week --Nothing Follows- BM 211 - Mathematics of Investment Page 4 of 4
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Problem 5-63 Effective Interest Rate (LO4) Assume you take out a car loan of $7,700 that calls for 60 monthly payments of $210 each. a. What is the APR of the loan? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Use a financial calculator or Excel. Annual percentage rate % b. What is the effective annual interest rate on the loan? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Effective annual rate %
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Chapter 5 Question 8
Question 5: Find the missing EAR and APR in each of the following cases: APR Number of Times Couponed EAR ??? Semi annually 12.4% 7% Quarterly ??? ??? Monthly 11.7% 10% Infinite ????
Question 7 of 13 A payment of $3,550 was due two years ago, and a payment of $1,100 is due today. What single payment two years from now would be equivalent to these original payments? Assume that money earns 3.5% compounded quarterly. Please include a well-labelled timeline diagram. Full solutions should be shown on separate sheets of paper. Submit your solutions. Round to the nearest cent
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Question 1 1.5 pts You win the lottery and are told you won $42000000. You actually won $1000000 every year for the next 42 years. If the first payment were to be made today and your required rate of return is 6% (effective annual rate) what would you accept today (in dollars) in exchange for all those 42 payments? (Round your answer to three decimal places. For example, 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234)
%24 What is the present value of a $1,000 payment made in five years when the discount rate is 10 percent? (Do not round Intermedlate calculatlons. Round your enswer to 2 declmal places.) Present value र् ( Prev 37 of 40 Next > ype here to search DELL F2 F4 F5 F7 F8 F11 F12 KA #3 V %
Problem 5-15 Calculating the Interest Rate (LO2) Find the interest rate implied by the following combinations of present and future values. Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required. Present Value $360 163 260 Years 10 3 6 Future Value 708 217 260 Interest Rate % % 0 %

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D Question 7 1 pts What is the effective annual rate (EAR) for a nominal rate (monthly compounding) of 16.2 %? SET YOUR CALCULATOR TO 4 DECIMAL PLACES THEN INPUT THE NUMBER AS PERCENTAGE ROUNDING TO 2 DECIMALS. DO NOT ENTER THE % SYMBOL..i.e. if your answer is 7.7711%, enter it as 7.77.