If nominal rate is 10 % per year compounded bimonthly, Determine the the following effective interest rates. a) effective per semiannual b) effective per quarter c) effective per bi-month d) effective per 2 years
Q: What is the effective annual rate of interest if $1200.00 grows to $1500.00 in two years compounded…
A: As per the given information: Future value = $1500 Present value = $1200 Period = 2 years compounded…
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: For an interest rate of 16 percent per year compounded semi-annually, determine the effective…
A: In this we have to determine interest rate for different situation.
Q: If the effective equivalent annual interest rate is 18.1%, and interest is compounded quarterly (1…
A: Information Provided: Effective equivalent annual interest rate = 18.1% Compounding = Quartelry
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: Calculate the APR for a 10% per annum nominal rate of interest that is compounded (a) 2 times per…
A: The annual percentage rate (APR) seems to be the annual interest earned by an amount charged to…
Q: if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: For an interest rate of 3% per quarter, determine the nominal interest rate per (a) semiannual…
A: In order to compute the interest amount, the interest rate is required to be multiplied by the…
Q: Find the effective annual interest rate r (as a percent) of the given nominal annual interest rate.…
A: The effective rate of interest can be calculated by using this equation EAR =1+rnn Where r= nominal…
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: Given an effective annual interest rate of 15%, calculate the correspondie a) annual nominal…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
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: ective annual rate for a nominal annual rate of 12% compounded semi annually.
A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…
Q: Determine the future value of $10,000 under each of the following sets of assumptions: Interest…
A: Future value: It is the value of money or asset for a specific period at a future date based on rate…
Q: if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate…
A: Nominal Rate = 11.5% Continuous Compounding
Q: Identify the compounding period for the following interest statements: (a) nominal 7% per year,…
A: Effective Annual Rate: The effective annual rate of interest is the actual or the real rate of…
Q: Find the effective rate of interest corresponding to a nominal rate of 7% per year compounded…
A: This question require us to compute the effective rate of interest.
Q: If $17,500 is invested at an interest rate of 10% per year, find the value of the investment at the…
A: Present Value (PV)= $17,500 Interest Rate (r)= 10% per year Time period (n)= 5 years Future Value at…
Q: a) Determine the present equivalent value of $10,000 paid every three months over a period of seven…
A: The present value is the addition of the discounted values of the future payments.
Q: If the nominal rate is 16.5% per year compounded quarterly, what is the equivalent effective rate of…
A: Annual interest rate (R) = 16.5% Compounding per year (M) = 4 Period of effective rate (N) = 3 Years
Q: If the effective annual interest rate is 12.82% and the nominal annual rate is 12.25%, compounding…
A: Effective Annual Rate = 12.82% Nominal Annual Rate = 12.25%
Q: What is the effective annual rate (EAR) if the stated rate is 8 percent and compounding occurs…
A: Computation of effective annual rate when rate is 8% and compounding is semiannually is as…
Q: Determine the effectivene annual yeild for 1 dollar invested for one year at 2 percent compounded…
A: Effective Annual Yield is the equivalent annual rate of return for nominal rate of return with more…
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: ate of a nominal annual rate of 12% compounded
A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…
Q: For an APR of 10% per year, if interest is compounded quarterly, determine the nominal rate per (a)…
A: a.
Q: A loan is offered with monthly payments and a 10 percent APR. What is the loan's effective annual…
A: In the given question we need to calculate the Effective annual rate (EAR) from the details given.
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: Use the given annual interest rate r and the compounding period to find i, the interest rate per…
A: GIVEN, annual interest rate (r) = 5.45% frequency of compounding (m) =12 (monthly compounding)
Q: Identify each of the following interest rate statements as either nominal or effective.a. 4% per…
A: The nominal rate of interest is the annual rate without the effect of compounding. The effective…
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: For the following investment, find the total number of compounding periods and the interest rate per…
A: Compounding periods is the number of times interest is compounded in an investment.…
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: If 10700 dollars is invested at an interest rate of 5 percent per year, find the value of the…
A: Compounding is a technique through which future amount of present value is calculated by using…
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: Find the effective rate corresponding to the given nominal rate. (Use a 365-day year.) 8%/year…
A: Using excel Effective rate function
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: Calculate the annual percentage yield of the following: an interest payment of 10% every two…
A: Every two years interest rate = 10%
Q: What is the effective annual rate, with a nominal annual rate of 10%, compounded monthly? - 10.0…
A: Details given in the question are : Nominal annual interest rate = 10% Compounded frequency =…
Q: Given the nominal rate of 12% per year compounded continuously, find a) Effective interest rate per…
A: When money is borrowed or lent, the concept of interest charge is an important one. The interest may…
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: A. Calculate the effective annual rate (EAR) in each of the following scenarios: b. APR = 10%,…
A: Since you have asked multiple questions, we will solve the first question for you. Please ask the…
Q: If the spot CAD/USD rate is 1.1239 and the three month interest rates on CAD and USD are 0.75% and…
A: A predetermined exchange rate at which the participants of the forward contract are agreed to do…
Q: (a) If the interest rate is 6% per year compounded quarterly, what is the effective annual interest…
A: Information Provided: Interest rate = 6% compounded quarterly NOTE: As per our policy, we only…
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=?
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- if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest a) per year b) per semiannual c) per bi month d) per quarter c) per two years Use the editor to format your answerFor an interest rate of 2% per quarter, determine the nominal interest rate per (a) semiannual period; (b) year; and (c) 2 years.For an APR of 10% per year, if interest is compounded quarterly, determine the nominal rate per (a) 6 months, and (b) 2 years.
- If the nominal rate is 16.5% per year compounded quarterly, what is the equivalent effective rate of interest a) per year b) per semiannual c) per bi month d) per week (assuming there are 4 weeks in a month) c) per three years Use the editor to format your answerFind the effective rate corresponding to the given nominal rate. (Use a 365-day year.) 6%/year compounded semiannually ____ %/yearFind the effective annual interest rate r (as a percent) of the given nominal annual interest rate. Round your answer to the nearest 0.01%. 13% compounded hourly (assume 365 days per year)
- If the interest rate is stated as 2.2% per 6 months compounded continuously, the effective annual interest rate is closest to: Select one: а. 3.4%. b. 2.22%. С. 4.5%. d. 3.45%.A. Calculate the effective annual rate (EAR) in each of the following scenarios: b. APR = 10%, monthly compounding c. 4% semi-annual interest rate, monthly compounding d. 1.5% monthly interest rate, daily compounding e. 3% quarterly interest rate, annual compoundingGiven an interest rate of 14%/year compounded semiannually. calculate effective rate using excel inbuilt functions
- For an interest rate of 16 percent per year compounded semi-annually, determine the effective interest rate,(a) semi-annually, (b) annually, (c) quarterly, (d) monthlyIdentify the compounding period for the following interest statements: (a) nominal 7% per year, compounded monthly; (b) effective 6.8% per year, compounded monthly; and (c) effective 3.4% per quarter, compounded weekly.Find the effective rate of interest corresponding to a nominal rate of 7% per year compounded monthly.