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: For each of the following situations involving annuities, solve for the unknown. Assume that…

A: Annuities refer to a series of fixed cash flows received periodically. The periodic frequency can be…

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: The future value of the account with interest compounded annually is The account earns $____ (what…

A: Future Value: It is the future worth of a present sum of amount and is calculated by the product of…

Q: Use graphical approximation techniques to answer the question. When would an ordinary annuity…

A: Future value:The term "future value" refers to the expected value of an investment at a future…

Q: What nominal rate compounded monthly is equivalent to 20% compounded annually? Round off your answer…

A: Effective annual interest rate represents the total interest rate after taking compounding effect…

Q: A deposit of $290 earns the following interest rates: 9 percent in the first year. 7 percent…

A: Deposit amount (P) = $ 290 First year interest rate (R1) = 9% Second year interest rate (R2) = 7%…

Q: Give typing answer with explanation and conclusion A deposit of $450 earns the following interest…

A: If amount is deposited for 3 years with different interest rate for each year , then ,Future value…

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: A deposit of $250 earns the following interest rates:   10 percent in the first year. 8 percent in…

A: Interest earned is the amount earned on the invested amount over the period of investment. It can be…

Q: If interest on a savings account is compounded semiannually, the effective rate of interest will…

A: In nominal interest is like simple interest but there is no compounding , in simple interest there…

Q: What real interest rate is offered by a savings account with a 13% nominal rate during a period of…

A: Nominal Interest Rate = 13% = 0.13Inflation Rate = 6% = 0.06

Q: What would be the annual percentage yield (APY) for a savings account that earned $174 on a balance…

A: In the above question we require to compute the annual percentage yield (APY) from below details:…

Q: What is the future value in 4 years of €1,000 invested in an account with a stated annual interest…

A: Amount Invested is 1,000 Time period is 4 years Interest rate is 10% To Find: Future Value…

Q: An investment will pay you $4,611.9 in 3 years if you pay $1,376.68 today. What is the implied rate…

A: Rate of return = (Future value / Present value)^(1/Time) - 1 where, Future value =  $4,611.9 Present…

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: The nominal interest rate on a loan is 12.5% and inflation is 3%. What is the real interest rate?

A: Information Provided: Nominal Rate = 12.5% Inflation = 3%

Q: At 7.24% interest, how long does it take (in years) to quadruple your money. Answer to two decimals.

A: The concept of TVM refers to the interest-earning capacity of money because money earned earlier is…

Q: If you borrow $100 at 5% interest rate (nominal) and inflation rate is 3%, what is the most accurate…

A: nominal interest rate = nr = 5% Inflation rate = ir = 3%

Q: What effective annual rate can a bank earn on an APR of 10.5 percent, compounded monthly? Can the…

A: Given information: Annual percentage rate : 10.5% Compounding frequency : 12

Q: 1. Using the example of a savings account, explain the difference between the effective annual rate…

A: Saving account is the type of deposit account in which interest is paid on the amount deposited.…

Q: Calculate the future value of the following annuities, assuming each annuity payment is made at the…

A: Annuity paymentsAnnual ratesInterest compoundedPeriod invested1$3,700.007.00%Semi-annually9…

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: How much is the present sum is equivalent to a series of P1000 annual end-of year payments, if a…

A: Annual payment (P) = P 1000 Interest rate (r) = 6% Number of annual payments (n) = 10

Q: ersity are from the metropolitan area and visit their hc zes that few good commuting alternatives…

A: The cashback period refers to the time frame it takes to recover the cost of an asset or investment.

Q: Consider the cash flows given above. What is the equivalent annual payment for 5-year annuity at 5%…

A: Annuity payment can be calculated by equating the present value of annuity with the present value of…

Q: A: How long will it take for money to triple when invested at 7.2% compounded monthly? B: How long…

A: Data given: A: rate=7.2% compounded monthly B: rate=7.2% monthly rate

Q: If a bank was offering a nominal rate of return of 12% compounded monthly, what is the annual…

A: Formula: Annual effective rate = ( 1 + r / N )N - 1 R = rate of return N = Period

Q: Which table would show the largest factor for an interest rate of 3% for seven periods? Future…

A: Under the ordinary annuity, payments are made at the end of the relevant period while under annuity…

Q: Your bank is offering a certificate of deposit with an APR of 6.02% compounded monthly. What is the…

A: Effective annual rate is computed by following formula-EAR = - 1 Where,EAR = effective annual rate…

Q: Find the effective annual interest rate r of the given nominal annual interest rate. Round your…

A: Effective interest rate is interest rate considering the impact of compounding on interest rate.

Q: If you bought a 4-week T-bill for Tk.887 and receive Tk.1,200 4 weeks later, what is the effective…

A: The Effective Annual Interest Rate (EAR) is the interest rate that is adjusted for compounding over…

Q: Suppose you have a k5000 bank deposits. The interest rate is 6% compounded quarterly for 1 year.…

A: The effective annual interest rate (EAR) represents the actual interest rate earned on an investment…

Q: Suppose the interest rate is 7.1% APR with monthly compounding. What is the present value of an…

A: APR = 7.1% compounded monthly The 6-month effective interest rate is

Q: Suppose that you want to take out a loan and that your local bank wants to charge you an annual real…

A: Compute the nominal interest rate: Nominal interest rate is calculated by using following formula:

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.