If the spot CAD/USD rate is 1.1239 and the two year interest rates on CAD and USD are 1.75% and 1.4% annually respectively, then calculate the 2-year CAD/USD forward rate.
Q: Nhat compound interest rate j, is equivalent over 11-year period to a compound interest rate of…
A: The future value of a lump sum: The value of an amount invested today, at a given rate of interest,…
Q: If the single payment present worth factor for 10 years is 0.30656. Determine the interest rate…
A: The present factor is the present value of $1 that has to be received/paid in the future.
Q: What is the discounted value of $899.00 paid at the end of every month for 3 years if interest is…
A: RATE (12%/2) 6% YEARS(7*2) 14 PERIOD PAYMENT (899*6) 5394 FUTURE VALUE $0
Q: Which of the following has the most effective annual rate of interest? A. 12.50 % compounded…
A: Effective annual rate (EAR) is the actual rate of interest earned after taking the effect of…
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: 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: An amount of $29,200 will provide 9 years of payments of $2,518.50 at the end of every 6 months.…
A: Present Value $ 29,200.00 Time Period 9 Semi Annual Payment(P/Y) $…
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: f a Condura Ref. costs P 24,830 will have an interest of P 2505 monthly that is payable for a year,…
A: The rate of interest is the basis for the calculation of monthly, annual, or quarterly interest. Any…
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: Government of Canada bond will pay $150 at the end of every six months for the next 10 years and an…
A: Bonds: Bonds are a debt instrument on which interest is paid. They can be issued at a discount/par…
Q: If the nominal annual interest rate is 15%, what is the effective interest rate when interest is…
A: In this question We require to calculate the effective interest rate from below details: Nominal…
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: For the following annuity due, determine the nominal annual rate of interest. Future Periodic Rent…
A: Solution:- When an equal amount is paid at the beginning of each period, it is called annuity due.…
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: For each of the following cases, indicate (a) to what rate columns, and (b) to what number of…
A: Both future value of annuity and present value of annuity considers compounding in its calculation.…
Q: If the stated annual rate of interest compounded semi-annually is 12.5% then what is the equivalent…
A: Interest rate (APR) = 12.5% Number of compounding per year (m) = 2
Q: At what effective rate, a single payment of $ 1,500.00 today is equivalent to two payments of $…
A: An annuity is a series of equivalent periodic cash flows that contain a fixed amount occurring at…
Q: What interest rate compounded bi-monthly is needed for an amount of P20,679 to increase to P30,550…
A: Using Excel Function: With Formulas:
Q: What rate compounded quarterly is equivalent to (c) 10% simple interest for two years, and (d) 10%…
A: In this we have to find out annual equivalent rate compounding quarterly.
Q: ank pays a simple interest rate of 4.1% on 30 to 179-day GICs of at least $100,000. What is the…
A: Simple interest rate is interest rate without compounding and is lower than the compounding…
Q: What nominal interest rate per year is equivalent to an effective 18% per year compounded…
A: Given: Effective interest rate = 18% Compounding semi annually
Q: What would be your annualized discount rate% on the purchase of a 170-day Treasury bill for $4700…
A: Annualized discount rate can be calculated as: = (Maturity amount - Initial amount) / Initial amount…
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: A 10-year loan of 2000 is to be repaid with payments at the end of each year. It can be repaid under…
A: Loan Amount, A=2000Yearly Payment, P=200Number of years=10Interest rate=5%Total amount paid in case…
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: 18. If the single payment amount factor for a period of 5 years is 1.33822, what is the nominal rate…
A: Future value is the future worth of a cash flow at a certain rate of interest and period of time.…
Q: A KIMEP BANK quotes you and interest rate of 12,5% per annum with semiannual compounding. What is…
A: Interest Rate per annum with semi annual compounding(r) = 12.5% Effective Interest Rate compounded…
Q: At 9% per year simple interest, $1000 is equivalent to $1270 in three years. Define the symbols for…
A: Interest charged on the principal amount at a fixed rate for a fixed period of time is known as…
Q: f the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate…
A: Nominal rate = 11.5% compounded continuously We need to find bi-monthly rate, where there are 24…
Q: ctive annual rate (EAR) closest to: A. 18.00%. B. 19.56%. C. 20.12% Use excel
A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…
Q: find the nominal annual rate of interest compounded semi-annually that is equivalent to 8.6%…
A: The effective annual rate of interest is the actual or the real rate of interest paid or received…
Q: What is the term if the final amount is P7,321 and the principal is P2,500 at 15% compound interest…
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…
Q: At what interest rate will ₱30,750 amount to ₱44,875 in 4 years and 6 months, if interest is…
A: Data given: Description Data FV (P) 44875 PV (P) 30750 r= rate (Compounded semiannually)…
Q: Assume that a one-year CD purchased for $1000 pays an APR of 6% that is compounded semi-annually.…
A: Here, Value of CD is $1,000 Time Duration is one year Interest Rate is 6% Compounding period is…
Q: With an interest rate of 5 percent per year, what is the present value on December 31, 2020 of…
A: Present value is also known as a present discounted value, in which the future value of cash inflows…
Q: Given the following information, calculate the rate of return. price = $501.88 time to maturity =…
A: price = $501.88time to maturity = 10 yearsannual payment = $100type = ordinary annuity
Q: from the table of loan installment below, if flat rate per month isn't 1.0022% but equal to 1.0000%…
A: Monthly Flat interest rate is 1.0000% Here; Number of periods is 12. To Find: Effective Annual…
Q: An interest rate is quoted as 4% per annum with quarterly compounding. What is the equivalent rate…
A: If R and r are the interest rate with compounding frequency of i and j respectively, in a year then:…
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: Which one of the following represents the highest effective interest rate per year? Select one:…
A: Daily compounded interest means that interest is accumulated on a daily basis and is calculated by…
Q: If nominal rate is 10 % per year compounded bimonthly, Determine the the following effective…
A: Nominal rate = 10% Compounding = BImonthly
Q: What amount will be accumulated by Php 1,520 in 10 semi annuals at 6% compounded bi-monthly? What…
A: Since you have asked multiple questions, we will solve the first question for you as per policy.…
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: What is the present value on January 1, 2019, of 7 equal future annual receipts of $30,000 if the…
A: The value of investment on Jan 1, 2019 can be calculated with the help of present value of annuity…
Q: e annual in
A: Given information : Effective annual interest rate = 8% Compounding period = 26 weeks
Q: What is the present worth of P 2,991 and P 6,337 payments at the end of the 5 and 15 years,…
A: Payment 1 (P1) = P 2991 at the end of year 5 Payment 2 (P2) = P 6337 at the end of year 15 r = 14%
Q: lculate the present value of the compound interest loan. (Round your answers to the nearest cent.)…
A: In this we have to calculate the present value of loan using given interest rate and compounding.
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…
If the spot CAD/USD rate is 1.1239 and the two year interest rates on CAD and USD are 1.75% and 1.4% annually respectively, then calculate the 2-year CAD/USD forward rate.
Step by step
Solved in 2 steps
- Estimate the annual percent rate for the add on loan Using the given number of payments and annual interest-rate. Use the formula APR = 2nr/n+1 N= 48; R= 8% APR=???The discount factor corresponding to a 3-year continuously compounded interest rate is 0.765667. What is the corresponding continuously compounded interest rate? What is the corresponding quarterly compounded interest rate expressed at an annual rate?A KIMEP BANK quotes you and interest rate of 12,5% per annum with semiannual compounding. What is the equivalent rate with annual compounding and continuous compounding? Choose the right answer: a. The rate with annual compounding is 12.89% and the rate with continuous compounding is 12.12% b. The rate with annual compounding is 12.12% and the rate with continuous compounding is 9.57% c. The rate with annual compounding is 10.28% and the rate with continuous compounding is 12.89% d. The rate with annual compounding is 10.38% and the rate with continuous compounding is 12.12%
- Find the APR of the loan given the amount of the loan the number and types of payment in the add-on interest-rate. Loan amount $15,000; three-year payments; rate equals 11%. The annual percent rate is? A loan of P95000 is borrowed for 240 days at a simple interest rate of 12.3 percent per year. What amount will be owed at the end of the 240-day period?What is the equivalent present value of the following series of payments: ₱ 5,000 the first year, ₱ 5,500 the second year, and ₱ 6,000 the third year? The interest rate is 8%, compounded annually. a. ₱ 15,904.22 b. ₱ 13,590.43 c. ₱ 12,573.90 d. ₱ 14,107.99
- Answer the given problem below. Attach a complete solution. A loan of P5000 is made for a period of 13 months, from January 1 to January 31 the following year, at interest rate of 20%. What future amount is due at the end of the loan period for an (a) ordinary and (b) exact interest rate?Use aspreadsheet to create amortization schedules for the following five scenarios.What happens to the total interest paid under each scenario?a. Scenario 1:Loan amount: $1 millionAnnual rate: 5 percentTerm: 360 monthsPrepayment: $0b. Scenario 2: Same as 1, except annual rate is7 percentc. Scenario 3: Same as 1, except term is 180monthsd. Scenario 4: Same as 1, except prepayment is$250 per monthe. Scenario 5: Same as 1, except loan amount is$125,000Answer the given problem below. Attach a complete solution. Determine the exact simple interest on P150 000 for the period June 25, 2005 to September 2, 2006, if the rate of interest is 12% per year?
- 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.If you borrow $7,500 at $550 interest for one year, what is your effective interest rate for the following payment plans? (Input your answers as a percent rounded to 2 decimal places.) a. Annual payment b. Semiannual payments c. Quarterly payments d. Monthly payments Effective Rate of Interest % % %Suppose that one has a bank loan for P15,584.48, which is to be repaid in equal end-of-month installments for 9 years with a nominal interest rate of 0.114 compounded monthly. What is the amount of each payment?