APR = 5%
n = 2 compoundings
Annual Effective Rate = [1 + (APR/n)]^n - 1
= [1 + (5%/2)]^2 - 1
= 1.050625 - 1
= 0.050625
Therefore, Annual Effective rate is 5.0625%
2. Given i(2) = 5%, find the annual effective rate i. (Ans: 0.050625)
given that I(9)= 3.6% find the equivalent annual effective interest rate.
Assume that nominal effective interest i(12) = .03. Find ? a) Annual effective interest rate i ? b) Monthly effective interest rate j ? c) Nominal interest rate i(52) compounded weekly. ? d) Nominal discount rate d(365) compounded daily.
7. The effective annual interest rate is 1 5%. What is the effective interest rate for two years (accumulated over 2 years with interest over interest)? What is the effective interest rate for ten years (accumulated over 10 years with interest over interest)? a. b. c. Assume interest is compounded monthly. What is the monthly interst rate? d. What is the simple annual interest rate? e. What is the simple interest rate for 2 years? For 10 years?
Suppose that for the coming year inflation is forecast at an effective annual rate of r = 5% and interest is forecast at effective annual rate i=8%. Find the real rate of return. Round your answer to 3 decimal places.
I need the SEMI-annual rate as well as the effective annual rate for both State and Frost. Please help me answer these below, I am running out of chances on the assignment system, and just cannot figure this out.... Compensating balance versus discount loan Weathers Catering Supply, Inc., needs to borrow $ 155,000 for 6 months. State Bank has offered to lend the funds at an annual rate of 8.7% subject to a 9.6% compensating balance. (Note: Weathers currently maintains...
an annual effective interest rate of 7%. Find the corresponding rates that are equivalent to this annual effective interest rate. Round all responses as Xxxx%. a.) Nominal semiannual interest rate
5. (Effective Annual Rate) Find the corresponding rates for: Ovo (a) 3% compounded monthly. 000.282 El sismos ON! (b) 18% compounded quarterly.
Find the effective annual interest rate (EAR) for each of the following: 4.00 percent compounded quarterly. (Round answer to 2 decimal places, e.g. 15.25%.) Effective annual rate % 4.80 percent compounded monthly. (Round answer to 2 decimal places, e.g. 15.25%.) Effective annual rate% 6.50 percent compounded semiannually. (Round answer to 2 decimal places, e.g. 15.25%.) Effective Annual Rate % 4.50 percent compounded daily. (Round answer to 2 decimal places, e.g. 15.25%. Use 365 days for calculation.) Effective Annual Rate %
What is the effective annual interest rate equivalent of a nominal rate given as 12% compounded quarterly?
Please show the work/formulas. Problem 26.30 | 3.570 At an annual effective interest rate of i, the present value of a perpetuity- immediate starting with a payment of 200 in the first year and increasing by 50 each year thereafter is 46,530. Calculate i. Problem 27.1 1825.596 A 20 year increasing annuity due pays 100 at the start of year 1, 105 at the start of year 2, 110 at the start of year 3, etc. In other words, each...