Question

- 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?

Answer #2

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answered by: anonymous

(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?

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...

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?

What is the nominal annual rate of interest compounded monthly
on a lease valued at $23,700.00, if payments of $6200.00 are made
at the beginning of every six months for 2 years?
The nominal annual rate of interest is ____%.
(Round to two decimal places as needed.)

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

Compute the effective annual rate of interest
a) for 6% compounded monthly
b) at which $1100 will grow to $2000 in seven years if
compounded monthly

Compute the effective annual interest rate for 4% compounded
semi-annually.
Select one:
a. 4.32%
b. 4.04%
c. 10.40%
d. 8.16%

What should a 11-year $1,000 10% semi-annual coupon bond sell
for, if the prevailing interest rate is 4% (compounded
semi-annually)?

Compute the nominal annual rate of interest compounded semi
annually on a loan of $48,000 repiad in installements of $4,000 at
the end of every sixc months for ten years Round answer to 2
decimal places.

Exercise IV (effective and nominal interest rate)
a. The effective interest rate is 21.44%. If there are 12
compounding periods per year, what is the nominal interest
rate?
b. What is the effective interest rate on a continuously
compounded loan that has a nominal interest rate of 25%?
c. Which is the better investment, a fund that pays 20%
compounded annually, or one that pays 18.5 % compounded
continuously?
d. Money invested at 6% per year, compounded monthly. How
money...

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