Effective semi annual interest rate = (1.02^6-1)*100=12.62%
Hence correct answer is option (d) 12.62%
1.5. For an interest rate of 2% per month, the effective semiannual interest rate is: a....
A bank loan that charges interest at the rate of 1.5% per month would have an effective annual rate (EAR) ofand a) 12.65%:13.40% b) 13.35%:12.60% c) 16.68%:15.00% d) 19.56%:18.00% an APR of (O
An investment of $2,000 is made and the interest rate is 1.5% per quarter. At the end of a year, determine the total amount available if: (a) simple interest is used. (b) discrete compound interest is used. (c) continuous compound interest is used. (d) the nominal interest rate. (e) the effective discrete compound interest rate. (f) the effective continuous compound interest rate.
An interest rate of 2% per month is the same as: O A) 24% per year B) A nominal 24% per year compounded monthly C) An effective 24% per year compounded monthly OD) Both ( a) and (b) Identify each of the following interest rate statements as either nominal or effective. V 12% per year compounded semiannually 0.1% per day compounded hourly 6% per year compounded annually 1. Nominal 4% per year 2. Effective 8% per year compounded monthly 1%...
Michelle has a credit card that charges 1.5% per month. What is the effective rate that the credit card company is charging? (Please show me the steps how to solve this question, thank you)
APR is 20%, compounded monthly. What is the semiannual effective interest rate?
If you borrow $9,500 at $680 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.) Effective Rate of Interest a. Annual payment b. Semiannual payments c. Quarterly payments d. Monthly payments
If you borrow $7,500 at $400 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.) Effective Rate of Interest a. Annual payment b. Semiannual payments c. Quarterly payments d. |Monthly payments
$1000 is invested for seven months at an interest rate of 1% per month. Determine: a) the effective seven month interest rate b) the effective annual interest rate
Problem 8-18 Effective rate under different terms [LO8-2] If you borrow $6,100 at $510 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.) Effective Rate of Interest Annual payment b. Semiannual payments c. Quarterly payments d. Monthly payments
solve it and explain how and why, in words please.
2. If the interest rate is 2% per month, what is the time period (TP)? what is the compounding Z period (CP)? Is this a nominal rate or an effective rate? What is the nominal quarterly rate? What is the nominal annual rate?
2. If the interest rate is 2% per month, what is the time period (TP)? what is the compounding Z period (CP)? Is this a nominal rate...