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An interest rate of 2% per month is the same as: O A) 24% per year...
a. For an interest rate of 100% per year compounded continuously, calculate the effective daily, weekly,...
a. For an interest rate of 100% per year compounded continuously, calculate the effective daily, weekly, monthly, quarterly, semiannually, and annually interest rates. b. An investor requires an effective return of at least 12% per year. What is the minimum annual nominal rate that is acceptable for continuous compounding?
8? 8. An interest rate of 10% per year compounded continuously is the same as: C...
8?
8. An interest rate of 10% per year compounded continuously is the same as: C D a. Effective 12.683% per year compounded continuously. b. Effective 1.08% per month compounded continuously. c. Nominal 1% per month compounded continuously. d. Effective 10.517% per year compounded continuously. C
If the nominal annual interest rate is 24% compounded continuously, then the effective interest rate per...
If the nominal annual interest rate is 24% compounded continuously, then the effective interest rate per six-months is OA. (20.24 - 1) OB. (20.24 - 1) O C. 6x (20.02 - 1) OD. €0.04 - 1 O E. 20.12 - 1
Question 1 (5 Points) 1. The following table shows examples of interest statements. Interpret those statements...
Question 1 (5 Points) 1. The following table shows examples of interest statements. Interpret those statements by filing the table. Nominal or Effective Interest | Compounding Period Interest Rate Statement 15% per year compounded monthly 15% per year Effective 15% per year compounded monthly 20% per year compounded quarterly Nominal 2% per month compounded weekly 2% per month 2% per month compounded monthly Effective 6% per quarter Effective 2% per month compounded daily 1% per week compounded continuously
5) An engineer deposits $500 per month into an account that pays 6% interest per year...
5) An engineer deposits $500 per month into an account that pays 6% interest per year semi-annually (2 times a year). How much will be in the account at the end of 10 years? Assume no interperiod. a. d) 80,611 b. a) 60.029 c. b) 70,250 od.c) 75,890 QUESTION 6 6) What effective annual interest rate is equal to a nominal 6% per year, compounded continuously? a. d) 6.55% b. a) 6.10% C. c) 6.25% d. b) 6.18%
Problem 4 - If interest rate is 15% per year. Find the nominal interest rate equivalent...
Problem 4 - If interest rate is 15% per year. Find the nominal interest rate equivalent to 15% if: 1. Compounding is every three months (quarterly) 2. Compounded hourly 3. Compounded continuously Note: Use 4 decimal points like 15.3542%
2.30 For a 15 percent effective annual interest rate, what is the nominal interest rate if...
2.30 For a 15 percent effective annual interest rate, what is the nominal interest rate if (a) Interest is compounded monthly? (b) Interest is compounded daily (assume 365 days per year)? (c) Interest is compounded continuously?
Find the effective rate of interest corresponding to a nominal rate of 6%/year compounded annually, semiannually, quarterly, and monthly
Find the effective rate of interest corresponding to a nominal rate of 6%/year compounded annually, semiannually, quarterly, and monthly. (Round your answers to two decimal places.)
1. If the nominal interest rate of is 2% per quarter, what is the nominal rate...
1. If the nominal interest rate of is 2% per quarter, what is the nominal rate per year ? 2. $100 of interest is paid each month on an investment of $10000, if the interest is compounded monthly at the end of 2 years, what is the accumulation at the end of two years ? 3. An individual wishes to deposit an amount of money now to have an accumulation of $500 at the end of five years. If the...
What effective interest rate per year, compounded continuously, is equivalent to a nominal rate of 15%...
What effective interest rate per year, compounded continuously, is equivalent to a nominal rate of 15% per year? Express your answer as a %.
8?
8. An interest rate of 10% per year compounded continuously is the same as: C D a. Effective 12.683% per year compounded continuously. b. Effective 1.08% per month compounded continuously. c. Nominal 1% per month compounded continuously. d. Effective 10.517% per year compounded continuously. C
If the nominal annual interest rate is 24% compounded continuously, then the effective interest rate per six-months is OA. (20.24 - 1) OB. (20.24 - 1) O C. 6x (20.02 - 1) OD. €0.04 - 1 O E. 20.12 - 1
Question 1 (5 Points) 1. The following table shows examples of interest statements. Interpret those statements by filing the table. Nominal or Effective Interest | Compounding Period Interest Rate Statement 15% per year compounded monthly 15% per year Effective 15% per year compounded monthly 20% per year compounded quarterly Nominal 2% per month compounded weekly 2% per month 2% per month compounded monthly Effective 6% per quarter Effective 2% per month compounded daily 1% per week compounded continuously
5) An engineer deposits $500 per month into an account that pays 6% interest per year semi-annually (2 times a year). How much will be in the account at the end of 10 years? Assume no interperiod. a. d) 80,611 b. a) 60.029 c. b) 70,250 od.c) 75,890 QUESTION 6 6) What effective annual interest rate is equal to a nominal 6% per year, compounded continuously? a. d) 6.55% b. a) 6.10% C. c) 6.25% d. b) 6.18%
Problem 4 - If interest rate is 15% per year. Find the nominal interest rate equivalent to 15% if: 1. Compounding is every three months (quarterly) 2. Compounded hourly 3. Compounded continuously Note: Use 4 decimal points like 15.3542%
2.30 For a 15 percent effective annual interest rate, what is the nominal interest rate if (a) Interest is compounded monthly? (b) Interest is compounded daily (assume 365 days per year)? (c) Interest is compounded continuously?
1. If the nominal interest rate of is 2% per quarter, what is the nominal rate per year ? 2. $100 of interest is paid each month on an investment of $10000, if the interest is compounded monthly at the end of 2 years, what is the accumulation at the end of two years ? 3. An individual wishes to deposit an amount of money now to have an accumulation of $500 at the end of five years. If the...
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