Find the effective annual interest rate r of the given nominal annual interest rate. Round your answer to the nearest 0.01%. 12% compounded monthly
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- Assume that at time 0 a sum L is lent for a series of n yearly payments. The rth payment, of amount xr, is due at the end of the rth year. Let the effective annual interest rate for the rth year be ir. Give an identity which expresses L in terms of the xr and ir.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 What is the effective interest rate per payment period for an interest rate of 12% compounded monthly when the payment is quarterly ? Select one: a.0.06 b. 0.5 c. 0.12 d. 0.4 e.0.03
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- Derive an equation to find the end-of-year future sum F that is equivalent to a series of n beginning-of-year payments B at interest rate i. Then use the equation to determine the future sum F equivalent to six B payments of $100 at 8% interest.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)Suppose that a savings account pays an effective rate of interest of 11.7 percent. What is the equivalent annual compound interest rate if interest is compounded semi-annually? Answer = %?
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