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 = %?

Q: Find the effective rate of  interest if the nominal rate is 12 % compounded bi - monhtly.

A: Annual Nominal interest rate = 0.12 Number of compounding in a year (n) = 6 (i.e. 12 months / 2)  Bi…

Q: What is the nominal annual interest rate if the effective annual rate is 5.5% and compounding is…

A: In this question the compounding is continuous so the nominal rate needs to be converted to…

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

A: The periodic rate equals the annual interest rate divided by the number of periods

Q: How long would it take for your money to double if it's invested in an account with quarterly…

A: Here,ParticularsValuesPresent value (PV) $ 100.00Future value (FV) $ 200.00Interest rate9.50%Number…

Q: Given an interest rate of 4.0% compounded monthly, determine the effective rate of interest. Answer…

A: Effective annual interest rate(EAR) refers to the actual interest rate which is received on deposits…

Q: What nominal annual discount rate compounded semiannually is equivalent to a nominal rate of…

A: Nominal Interest Rate: When the market inflation is not taken into consideration while computing the…

Q: What would be the annual percentage yield for a savings account that earned $60.00 in interest on…

A: Annual Precentage Yield = (Annual interest / Principal amount ) x 100Note : 365 days = 1 year

Q: What is the effective annual rate (EAR) if your credit card charges you 10.45 percent compounded…

A: The effective annual rate measures the rate of interest or return when the compounding is done on a…

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: he principal is borrowed at a simple interest rate r for a period of time t. Find the simple…

A: Simple interest is a straightforward method of calculating interest based on a fixed percentage of…

Q: If the annual interest rate is 7%, what is the monthly interest rate that would be used as the "r"…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: Find the difference between the sums of an annuity due and an ordinary annuity for the following…

A: An annuity is a series of cash flows wherein an equal amount is paid every period. An ordinary…

Q: Suppose you invest $1,500 in an account paying 6% interest per year. How much of this balance…

A: Interest earned refers to the profit over the investment earned by the investors at a specified rate…

Q: f the interest is compounded monthly then m is equal to?

A: Compound Interest Compound Interest refers to the interest generated on principal as well as on the…

Q: What was the annual rate of simple interest offered on a savings of $7106 if the amount of interest…

A: What was the annual rate of simple interest:- Given information:- Savings(P)…

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: what simple interest rate is equivalent to 1% compounded quarterly

A: Simple interest rate is the rate which does not compound means under this rate there is no concept…

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: What is the equivalent effective rate of minal rate is 14.5%?

A: Nominal interest rate is interest rate without the impact of compounding but effective interest rate…

Q: Calculate the total present value at time 0 of a payment of £257 paid at time 4 and a payment of £67…

A: Using the PV formula given below, we can determine the Present value of an amount. PV = FV(1+r)n…

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: Find the future value of the following ordinary annuities. Payments are made and interest is…

A: Future value refers to an amount of the current asset at some future date affected by interest…

Q: uppose that one has a bank loan for P15,584.48, which is to be repaid in equal end-of-month…

A: In this we need to calculate present value factor and from that you will get monthly payment.

Q: 4. What is the effective annual interest rate i A savings account with 4% annual interest rate…

A: Details given to us are : Annual interest rate = 4% Compounding frequency = Monthly We need to…

Q: You are told that the nominal rate of interest is 3.46% per quarter year payable monthly. Calculate…

A: Nominal Rate of Interest = r = 3.46%Interest rate compound = rc = Quarterly = 4Payable Compound = pc…

Q: What is the annual effective interest rate equivalent to a nominal rate of 12 percent a year? Yanıt:

A: The effective rate of interest is an important technique in the case of multi-period compounding. If…

Q: Suppose an interest rate of 4% a) having $200 today is equivalent to having what amount in one year?…

A: (a) Interest  = 4% Present value =$200 Time = 1 year So, Amount at the end of one year =  Future…

Q: 4. Suppose our savings account ($937.33) pays us compound interest with monthly compounding.…

A: Compounding is related to earning interest on interest. The compounding interest is more beneficial…

Q: What is the nominal rate of interest compounded semi annually which is equal to 8.81% compounded…

A: Interest rate (APR) = 8.81% Compounding per year (M) = 4

Q: 4. What is the effective annual interest rate a. A savings account with 4% annual interest rate…

A: In this question we need to compute the effective annual interest rate.

Q: Find the present values of these annuities due. a. What is the present value of $4,000 per month…

A: PMT=$4000 per monthNumber of payments=n=12Interest rate=4.8%Monthly interest rate=r=4.8/12=0.4%Find…

Q: What would be the annual percentage yield for a savings account that earned $54 in interest on $750…

A: Investment amount = $750Interest earned = $54

Q: What is the interest earned in a savings account after 12 months on a balance of $7500 if the…

A: APY is an abbreviation for “annual percentage yield,” which is the percentage that indicates how…

Q: The annual interest rate is 12%. Find (a) the semi-annual rate, (b) the quarterly rate, (c) the…

A: semi-annual rate is the rate that is compounded twice a year (i,e) for every six months is called…

Q: If the nominal annual interest rate is 15%, what is the effective interest rate when interest is…

A: Given, Nominal interest rate = 15% Compounded frequency = Monthly We need to compute the effective…

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: What is the rate of interest per interest period if the nominal rate of interest is 25% compounded…

A: nominal rate of interest = 25% Compounded monthly No. of period = 12

Q: What is the effective interest rate corresponding to a nominal annual rate of. (Round your…

A: Whenever the impacts of compounding over time are considered, the effective annual interest rate is…

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.