Q: What is the discounted value of $1182.00 paid at the end of every year for 7 years if interest is…
A: rate of interest = 9% per annum compounded monthly converting into effective annual rate Effective…
Q: if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate…
A: Effective rate of interest is rate which is computed after taking into account all the compounding…
Q: What is the effective annual rate (EAR) if the stated rate is 8 percent and compounding occurs…
A: In this question we need to calculate the effective annual rate (EAR).
Q: At what nominal rate, compounded quarterly, would $15,000.00 have to be invested to amount to…
A: FV = PV * (1 + i/n)^(n * Years) Where FV = Future Value = $18276.04 PV = Present Value = $15000 i =…
Q: What is the present value of a stream of monthly payments of $500 each over 10 years, if the…
A: Monthly payment (P) = $500 Interest rate = 10% Monthly interest rate (r) = 10%/12 =…
Q: For an interest rate of 2% per quarter, determine the nominal interest rate per (a) semiannual…
A: The nominal interest rate is the rate of interest without taking compounding and inflation rate into…
Q: Find the nominal rate compounded quarterly of 30 % compounded monthly.
A: Effective annual interest rate(EAR) refers to the real rate of return that we earn on our savings or…
Q: What is the future value of $3,100 in 17 years assuming an interest rate of 8.4 percent compounded…
A: Given,Present Value (PV) = $3,100Rate of Interest (r) = 8.4% or 0.084Time Period (t) = 17 yearsType…
Q: What is the nominal rate if the effective rate is15.32% compounded semi-annually?
A: Effective annual rate (EAR) refers to a real interest rate which an investor is expect from his…
Q: Determine the nominal rate for and interest rate of 1.5% per month compounded quarterly?
A: Nominal rate is the rate calculated without taking compounding into account
Q: For an interest rate of 12% per year, compounded quarterly, the effective interest per six months is…
A: APR = 12% Number of compounding per year (m) = 4
Q: What nominal rate compounded semi-annually yields the same amount as 20 % compounded quarterly?
A: Given rate (r) = 20% quarterly compounded (Compounding frequency = 4) Let i = Nominal rate…
Q: What is the effective annual interest rate when 12% per year is compounded quarterly? 0.13 or 0.23?
A: In this we have to calculate the effective interest rate annually.
Q: An interest of 8% compounded semi annually is how many percent if compounded quarterly?
A: Formula: Effective interest rate=1+rnn-1where,r=nominal raten=number of compounding periods in a…
Q: If the nominal rate is 16.5% per year compounded quarterly, what is the equivalent effective rate of…
A: Since you have asked a question with multiple parts, we will solve the first 3 parts as per policy.…
Q: What effective annual interest rate is equivalent to 9% compounded quarterly?
A: In this question we need to compute the effective annual interest rate compounded quarterly.
Q: What is the effective annual rate of interest if $1200.00 grows to $1500.00 in two years compounded…
A: Effective Annual Rate: It is the real rate of return paid on a loan or earned on an investment,…
Q: If the effective interest rate is 20% per annum, what is the Nominal Rate if it is? a.Compounded…
A: The effective annual rate of interest is the actual or the real rate of interest paid or received…
Q: What is the effective annual interest rate of an investment that pays 7.6% annual interest,…
A: The effective annual interest rate is defined as the real return on any interest paying investment…
Q: est is paid at a rate of 5% per year, compounded quarterly, what is the effective annual rate?
A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…
Q: If $956.00 accumulates to $1250.87 in three years, three months compounded monthly, what is the…
A: The real interest that an investor earns on the investment and a borrower pays on loan after…
Q: Find the nominal rate compounded semi annually which is equivalent to 20% compounded quarterly. What…
A: Nominal Rate = 20% Compounded Quarterly Number of compounding periods = 4
Q: For an effective interest rate of 16% per annum, what is the equivalent nominal annual rate…
A: The periodic interest rate is multiplied by the number of periods in a year to create the nominal…
Q: What is the EAR corresponding to a nominal rate of compounded semiannually? Compounded 10%…
A: EAR is effective annual rate i.e. equivalent interest rate for interest rate which are compounded…
Q: An account pays interest at a nominal rate of 10% per year. Find the effective annual yield if…
A: In the above question we require to compute the effective annual yield from below details : Nominal…
Q: For an APR of 10% per year, if interest is compounded quarterly, determine the nominal rate per (a)…
A: a.
Q: What effective interest rate per year is equivalent to 19% per year compounded quarterly?
A: Formula for effective rate of interest = (1+i/n)n-1…
Q: If 36,400 dollars is invested at an interest rate of 7 percent per year, find the value of the…
A: The future value is the future worth of the amount that will be paid or received in the future.
Q: For an interest rate of 2% per month, find (a) the effective rate per quarter, and (b) the effective…
A: The effective interest rate is the rate that is charged by the lender from the borrower for the cost…
Q: Calculate the effective annual rate for 9.4% compounded quarterly.
A: We need to compute the effective annual rate in this question.
Q: For an interest rate of 1% per quarter, determine the nominal interest rate per (a) semiannual…
A: The nominal rate of interest is the annual rate which is charged on the securities. The nominal…
Q: If the rate of interest is 12% compounded annually, find the equivalent rate of interest if it is…
A: Compounding interest is the interest on the initial amount plus interest. As the compounded interest…
Q: An interest rate of 10% compounded semianually is equivalent to how many percent compounded…
A: Effective Annual Interest rate(EAR) refers to the real rate of return that we earn on our savings or…
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%…
Q: An interest rate of 12% per year, compounded monthly is equivalent to what nominal and effective…
A: The nominal interest rate can be defined as the rate of return on an investment with out any…
Q: What is the effective annual interest rate of an investment that pays 6.5% annual interest,…
A: EAR is the actual rate of return investment or loan generates after taking compounding into account.…
Q: What is the future value of $950 paid on the last day of each 6 months for 12 years assuming an…
A: The future value represents the amount which going to be received in the future. The formula used to…
Q: What is the discounted value of $1433.00paid at the end of every six months for 6 years if interest…
A: Present Value of annuity refers to the present value of all the future payments of and series of…
Q: A series of equal quarterly payments of $6,000 for 10 years is equivalent to what present amount at…
A: Information Provided: Quarterly payments = $6000 Years = 10 Interest rate = 12%
Q: A financial institution quotes a rate of 6.45 percent compounded monthly.What is the effective rate…
A: The real interest that an investor earns on the investment and a borrower pays on loan after…
Q: An interest rate of nominal 10% per year, compounded weekly, is
A: The nominal rate is the rate of interest an investment generates without taking the compounding…
Q: What is the effective annual rate of interest if $900.00 grows to $1200.00 in four years…
A: Using excel RATE function
Q: If the interest rate is 12% compounded quarterly, what is the interest rate per conversion period?
A: The conversion period for the interest rate is the period in which the interest rate gets…
Q: What are the effective annual rates of the following: a) 12% APR compounded monthly? b) 16% APR…
A: Effective Annual Rates (EAR) = ( 1+ APR/m)m - 1 APR = Annual Percentage Rate n = number of…
Q: An interest rate of effective 30% per year .compounded semiannually is nearest to
A: Interest rate per year= 30% Rate of interest when compounded semi annually=?
If the nominal rate is 16.5% per year compounded quarterly, what is the equivalent effective rate of interest per three years
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- if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest per two years?if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest per bi monthIf interest is paid at a rate of 5% per year, compounded quarterly, what is the effective annual rate?
- An interest rate is quoted as 3.75% per year compounded quarterly, what is the effective semi-annual rate?What is the effective annual interest rate when 12% per year is compounded quarterly? 0.13 or 0.23?If the effective annual interest rate is 8%, what is the nominal annual rate if compounding is bi-monthly?
- If the rate of interest is 12% compounded annually, find the equivalent rate of interest if it is compounded quarterly.If the stated annual rate of interest compounded semi-annually is 12.5% then what is the equivalent monthly rate compounded monthly?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.
- For an effective interest rate of 16% per annum, what is the equivalent nominal annual rate compounded semiannually? And quarterly ?And monthly ?Find the effective rate of interest corresponding to a nominal rate of 7% per year compounded monthly.What is the effective interest rate for quarterly transaction if the interest rate is 5% per year compounded monthly?