Question

If the discount rate is 24 percent **compounded
quarterly**, what is the **effective weekly
rate**? (Assume a 52 week year.)

26.25% |

1.92% |

0.45% |

7.43% |

Answer #1

**Answer is
0.45%**

Discount Rate = 24% compounded quarterly

Effective Annual Return = (1 + APR/n)^n - 1

Effective Annual Return = (1 + 0.24/4)^4 - 1

Effective Annual Return = (1 + 0.06)^4 - 1

Effective Annual Return = 1.2625 - 1

Effective Annual Return = 0.2625

Effective Annual Return = 26.25%

Effective Weekly Rate = (1 + EAR)^(1/52) - 1

Effective Weekly Rate = (1 + 0.2625)^(1/52) - 1

Effective Weekly Rate = 1.2625^(1/52) - 1

Effective Weekly Rate = 1.0045 - 1

Effective Weekly Rate = 0.0045

Effective Weekly Rate = 0.45%

If a nominal interest rate compounded quarterly is 8%, what is
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What effective interest rate per 6 months is equivalent to an
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What is the effective annual rate if a bank charges you 8.25
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a. 8.42%
b. 8.32%
c. 8.51%
d. 8.91%

6. Given a 6 percent discount rate compounded quarterly, what is
the present
value of a perpetuity of $100 per month if the first payment does
not begin until the end
of year five?
Could you explain the question in detail with formula plz! I
don't understand others poster answers.

The appropriate discount rate for the following cash flows is 9
percent compounded quarterly.
Year
Cash Flow
1
$600
2
600
3
0
4
1,300
What is the present value of the cash flows?

The appropriate
discount rate for the following cash flows is 13 percent compounded
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Year
Cash Flow
1
$600
2
900
3
0
4
1,200
What is the
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The appropriate
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Year
Cash
Flow
1
$800
2
700
3
0
4
1,400
Required:
What is the
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Multiple Choice
$2,178.57
$2,093.13
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