Question 1 (5 Points) 1. The following table shows examples of interest statements. Interpret those statements...
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?
Problem 2.2 Effective interest rate Given: The nominal interest rate is 7%. You wish to know the difference in the frequency of compounding Find: The effective (annual) interest rate if the nominal interest rate of 7% is compounded (a) quarterly, (b) monthly, (c) weekly, (d) daily, and (e) continuously. Solution:
Problem 2.2 Effective interest rate Given: The nominal interest rate is 7%. You wish to know the difference in the frequency of compounding Find: The effective (annual) interest rate if the nominal interest rate of 7% is compounded (a) quarterly, (b) monthly, (c) weekly, (d) daily, and (e) continuously. Solution
please answer wuestion from f to i Preliminary Examples ompute, to the nearest cent, the future value of an investment of $10,000 at the stated rate of interest after the state hort amount of time. a3% per year, compounded yearly, after 5 years b) 3% per year, compounded semi-annually, after 5 years c) 3% per year, compounded quarterly, after 5 years d) 3% per year, compounded monthly, after 5 years e) 3% per year, compounded daily, after 5 years f)...
I need 17-30!! Calculate the yearly interest rate if an investment is paid 1.75% interest every two months 17 2.18 Calculate the interest rate per interest period if the yearly interest rate is 13% and the number of interest periods per year is three. 2.19 Calculate the number of interest periods per year if the yearly interest rate is 15% and the interest rate per interest period is 2.5% 2.20 Calculate the yearly interest rate if there are 12 interest...
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%...
Problem 9: If the nominal interest rate is 21.00 percent, what is the effective interest rate per year for (percentage, to at least two decimal places): ((2 pts.) compounding annually? (b) (2 pts.) compounding quarterly (once every 3 months)? (c) (2 pts.) compounding monthly? (d) (2 pts.) compounding daily? (e) (2 pts.) compounding continuously?
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?
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%
Periodic interest rates. In the following table, fill in the periodic ra First, fill in the periodic rates in the following table. (Round to two decim (Click on the following icon in order to copy its contents into a spreadsheet.) APR Compounding per Year APR Compounding per Year - 2 Effective Annual Rate Periodic Rate Period Semiannual 7% 7% Period Semiannual Quarterly Monthly Daily 8% Quarterly Periodic Rate 3.50 % 2.00 % 0.50 % 0.0089 % 6 % 8% 6%...