If the interest rate is 9% per quarter, compounded monthly, what is the effective monthly rate? What is the effective quarterly rate? What is the effective annual interest rate?
Homework Answers
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?
4. Find the effective bimonthly interest rate equivalent to: (a) nominal annual interest of 9%, compounded...
4. Find the effective bimonthly interest rate equivalent to: (a) nominal annual interest of 9%, compounded 6 times per year; (b) nominal annual discount of 6%, compounded quarterly; (c) 1/2 nominal annual interest of 8%, compounded continuously.
2. What nominal annual interest rate compounded monthly is equivalent to an effective annual interest rate...
2. What nominal annual interest rate compounded monthly is equivalent to an effective annual interest rate of 8% per year for the first 10 years followed by a nominal annual interest rate of 5% compounded daily for the second 10 years? Give your answer as a percent rounded to three decimal places. Answer:
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...
Consider a 30-year mortgage with an interest rate of 10% compounded monthly and a monthly payment...
Consider a 30-year mortgage with an interest rate of 10% compounded monthly and a monthly payment of $850. (1) Calculate the principal. (2) How much of the principal is paid the first, 5th, 20th and last year? (3) How much interest is paid the first, 5th, 20th and last year year? (4) What is the total amount of money paid during the 30 years? (5) What is the total amount of interest paid during the 30 years? (6) What is...
A bank is currently offering a savings account paying an interest rate of 9.10 percent compounded...
A bank is currently offering a savings account paying an interest rate of 9.10 percent compounded quarterly. It would like to offer another account, with the same effective annual rate, but compounded monthly. What is the equivalent rate compounded monthly? Equivalent rate ______%
please show calculationd 5. If the nominal rate of interest is 9% and it is compounded...
please show calculationd
5. If the nominal rate of interest is 9% and it is compounded monthly what rate of interest? (2 points) monthly what is the effective annual 6. If you invest 500 dollars at the beginning of each year how much will you have in 6 years if you earn 6% compounded weekly? (3 points)
If the annual interest rate is 5% that is compounded daily, monthly and yearly, what is...
If the annual interest rate is 5% that is compounded daily, monthly and yearly, what is the formula to calculate the effective interest after 3 years ?
Determine the periodic interest rate for a nominal interest rate of 2.7% compounded: (Round your answers...
Determine the periodic interest rate for a nominal interest rate of 2.7% compounded: (Round your answers to 2 decimal places.) a. Semiannually. % per half-year b. Quarterly % per quarter c. Monthly % per month
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? A) 0.5% B) 8% C) 16% D) 4% 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 ? A) $12,544 B) $12,700 C) $12,400 D) $12,400 3. An individual wishes to deposit an amount of money...
2. What nominal annual interest rate compounded monthly is equivalent to an effective annual interest rate of 8% per year for the first 10 years followed by a nominal annual interest rate of 5% compounded daily for the second 10 years? Give your answer as a percent rounded to three decimal places. Answer:
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...
please show calculationd
5. If the nominal rate of interest is 9% and it is compounded monthly what rate of interest? (2 points) monthly what is the effective annual 6. If you invest 500 dollars at the beginning of each year how much will you have in 6 years if you earn 6% compounded weekly? (3 points)
Determine the periodic interest rate for a nominal interest rate of 2.7% compounded: (Round your answers to 2 decimal places.) a. Semiannually. % per half-year b. Quarterly % per quarter c. Monthly % per month
1. If the nominal interest rate of is 2% per quarter, what is the nominal rate per year? A) 0.5% B) 8% C) 16% D) 4% 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 ? A) $12,544 B) $12,700 C) $12,400 D) $12,400 3. An individual wishes to deposit an amount of money...
Most questions answered within 3 hours.
-
3...
The following information was taken from Indriks Company’s cash
budget for the month of July:...
asked 8 minutes ago -
Country Company had the following partially completed payroll
register:
Partial payroll register:
Earnings
Withholdings
Salaries
Beginning...
asked 12 minutes ago -
I
have to separate 5 ions into 5 different test tubes
-> I CAN’T MAKE THE...
asked 21 minutes ago -
Juanita took a business trip from Houston to New York. She
worked for 4 days, then...
asked 21 minutes ago -
4. If we had
assumed the q for the calorimeter to be zero, would this have...
asked 29 minutes ago -
The following table reports real income per person for several
different economies in the years 1960...
asked 27 minutes ago -
Since the Great Recession, the trade deficit has been
decreasing
staying about the same
increasing
none...
asked 28 minutes ago -
A rigid tank contains 1.60 moles of an ideal gas. Determine the
number of moles of...
asked 32 minutes ago -
There are four different math books, six statistics and two
physics books which should be accommodated...
asked 48 minutes ago -
QUESTION 17
The Age Discrimination in Employment Act prohibits specific
employers from discriminating against persons who...
asked 48 minutes ago -
(Python) In the Unified Modeling Language, which symbol
indicates that objects of the Music class contain...
asked 52 minutes ago -
Question #2. An assest was purchased for
$100,000 on 1 January 20X5 and straight line depreciation...
asked 54 minutes ago