Question

1- For an annual interest rate of 10% compounded continuously what it will be the effective annual interest rate?

2. For an annual interest rate of 10% compounded quarterly what it will be the effective annual interest rate?

3. For a monthly interest rate of 1.2 % compounded quarterly what it will be the effective annual interest rate?

Answer #1

5. For an annual interest rate of 10% compounded
quarterly what it will be the effective annual interest rate?

Given an interest rate of 1% per month, compounded continuously,
determine the effective annual rate:
ans: 0.1275

5) What is the effective annual interest rate for a loan with a
nominal annual interest rate of 12% if compounded:
semi-annually. Answer ____________________
monthly. Answer _________________________
continuously. Answer _____________________
6) You make a series of quarterly deposits every quarter
starting at the end Quarter 1 and ending at the end of Quarter 36.
The first deposit is $1,100, and each deposit increases by $500
each Quarter. The nominal annual interest rate is 7%, and is
compounded continuously. What is...

For an annual interest rate of 11% compounded bi-monthly what
it will be the effective annual interest rate?
For an annual interest rate of 12% compounded semi-annually
what it will be the effective annual interest rate?
For an annual interest rate of 12% compounded every 4 months
what it will be the effective annual interest rate?

7. What is the effective annual interest rate for a bank account
that pays a continuously compounded interest rate of 8%?

(a) If the annual interest rate is 6% and
interest is compounded semiannually, what is the
effective
annual interest rate?
(b)
If the annual interest rate is 9% and interest is compounded every
four months (3
times
a year), what is the effective annual interest
rate?
(c)
If the annual interest rate is 7.25% and interest is compounded
every three months (4 times a year), what is the effective
annual interest rate?

What is the effective monthly interest rate for a loan with a 8%
nominal annual interest rate if the loan is compounded
(a) monthly, (b) daily, or
(c) continuously?
A friend offers you a loan at an effective daily interest rate
of 0.2%. (a) What is the nominal (also known as
the APR or Annual Percentage Rate) rate for this loan?
(b) What is the effective annual interest rate for
his loan?
Show all work please

Calculate the Nominal Interest Rate, the Interest Rate per
Compounding Period and the Effective Annual Interest Rate for the
following problems:
1. A Bank is offering a saving account at 3% compounded
monthly.
2. A Credit Card company says their card charges an APY of
8.5619% compounded quarterly.
3. Nomani wants to earn 0.25% per week.

If a nominal interest rate compounded quarterly is 8%, what is
the annual effective discount rate?
SHOW FORMULAS AND GET THUMBS UP

3. What effective interest rate per year is equal to 1.4% per
month, compounded continuously?

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