Question

Which of the following would result in the highest effective annual rate? Question options: A. 6%...

Which of the following would result in the highest effective annual rate? Question options:

A. 6% effective semiannually

B. 12% effective annually

C. 1% effective monthly

D. 3% effective quarterly

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which one of the following has the highest effective annual rate? Question 9 options: 1) 6...
Which one of the following has the highest effective annual rate? Question 9 options: 1) 6 percent compounded annually 2) 6 percent compounded quarterly 3) 6 percent compounded semiannually 4) 6 percent compounded monthly 5) 6 percent compounded weekly
20.Which one of the following has the lowest effective annual rate? a. 6 percent compounded annually...
20.Which one of the following has the lowest effective annual rate? a. 6 percent compounded annually b. 6 percent compounded semiannually c. 6 percent compounded quarterly d. 6 percent compounded daily 21.If the market interest rate falls, bond priceswill _____ .a.fall b.remain unchanged c.rised. d. fluctuate violently
8. A given rate is quoted as 12% APR, but has an effective annual rate (EAR)...
8. A given rate is quoted as 12% APR, but has an effective annual rate (EAR) of 12.55%. What is the frequency of compounding during the year? a. Annually b. Semiannually c. Quarterly d. Monthly e. Daily
Which one of the following compounding periods will yield the highest effective annual rate given a...
Which one of the following compounding periods will yield the highest effective annual rate given a stated future value at year 5 and an annual percentage rate of 10 percent? A. Semi-annual. B. Annual. C. Daily. D. Monthly. E. Continuous.
Which of the following one-year, $1000 bank loans offers the lowest effective annual rate? a. A...
Which of the following one-year, $1000 bank loans offers the lowest effective annual rate? a. A loan with an APR of 6%, compounded monthly b. A loan with an APR of 6%, compounded annually, with a compensating balance requirement of 10% (on which no interest is paid) c. A loan with an APR of 6%, compounded annually, with a 1% loan origination fee
Question 6 Which of the following is correct? Question 6 options: A) APS + MPC =...
Question 6 Which of the following is correct? Question 6 options: A) APS + MPC = 1. B) APC + APS = 1. C) APC + MPS = 1. D) APS + MPS = 1. Save Question 7 The greater is the marginal propensity to consume, the: Question 7 options: A) smaller is the average propensity to consume. B) higher is the interest rate. C) smaller is the marginal propensity to save. D) lower is the price level Question 8...
Of the following investments, which would have the highest present value? Assume that the effective annual...
Of the following investments, which would have the highest present value? Assume that the effective annual rate for all investments is the same and is greater than zero. Group of answer choices Investment A pays $250 at the end of every year for the next 10 years (a total of 10 payments). Investment B pays $125 at the end of every 6-month period for the next 10 years (a total of 20 payments). Investment C pays $125 at the beginning...
Assuming all CDs have equal risk, which of the following CD’s investments has the highest effective...
Assuming all CDs have equal risk, which of the following CD’s investments has the highest effective annual return (EAR)? A bank CD that pays 8.78 percent compounded daily A bank CD that pays 9.01 percent compounded monthly A bank CD that pays 9.10 percent compounded quarterly A bank CD that pays 9.17 percent compounded semiannually
5) What is the effective annual interest rate for a loan with a nominal annual interest...
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...
(a) If the annual interest rate is 6%  and interest is compounded semiannually, what is the                  effective...
(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?