9. Camilla wishes to compute the effective annual rate of a financial instrument with stated annual rate of 22% and compounded on a quarterly basis? Which of the following is most likely to be closest to the effective annual rate? А. 23%. В. 24%. C. 25%.

Q: Carly took out a $8,900, three-year loan with an APR of 8.25%. What is the total amount of payments?…

A: Loans are paid by the monthly payments these carry the varying amount of payment for interest and…

Q: What is the present value of monthly payments of $400 for 5 years followed by monthly payments of…

A: First Monthly Payment = $400 Time Period = 5 years Second Monthly Payment = $800  Time Period = 10…

Q: 4. Compute the effective annual interest rate in each of the following situations a. 5.75% nominal…

A: a. Convert 5.75% compounded quarterly to its equivalent interest rate for annual interval. Here, 'R'…

Q: What is the future equivalent at EOY 8 of $5,000 annual payments made at the beginning of each year…

A: N = 8 years Annual Payment (PMT) = 5000 Beginning of year payments Rate (r) = 7%

Q: 16. What annual rate r compounded continuously is equivalent to a nominal rate of 6% compounded…

A: We first need to determine the effective annual rate of semiannual compounding by using the formula…

Q: What nominal rate of interest compounded semi-annually can be used instead of 10 % comp. monthly…

A: We need to determine the effective annual rate that would equal the 2 compounding methods. The…

Q: Q7-3. If interest is compounded more than once a year, will the effective interest rate be higher…

A: Let the nominal interest rate = r Compounding frequency = m

Q: You deposit $137987 at 4.6% per year in a saving account. What is the interest at the end of one…

A: Under compound interest, the interest will be calculated on the interest earned and the deposit…

Q: an annuity $4,947.11 today make equal payment at end of year 8 equal payments at 6.5%. What will be…

A: Annuities are a series of equal cash flows that occur at regular intervals over a specified period…

Q: What is the nominal rate if the effective rate is15.32% compounded semi-annually?

A: Effective annual rate (EAR) refers to a real interest rate which an investor is expect from his…

Q: An obligation of $8550.00 due in 2.5 years is to be settled by four equal payments due today, nine…

A: Step 1 An equated monthly installment (EMI) is a fixed monthly payment paid by a borrower to a…

Q: A loan is offered with monthly payments and a 11.25 percent APR. What's the loan's effective annual…

A: Effective Annual Rate (EAR) is the actual rate of interest paid, by taking into account the…

Q: effective interest rate on a loan

A: Effective interest rate refers to the return on the savings account at the time compounding effects…

Q: Find the future values of the following ordinary annuities: a. FV of $300 paid each 6 months for 5…

A: Future value of annuity is stream of recurring at regular interval cashflow compounded at specified…

Q: Determine the present values if OMR5,000 is received in the future (i.e., at the end of each…

A: The time value of money is used for computing the present and the future values of a given sum of…

Q: 70. The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable…

A: Effective annual rate is computed after taking into account all the compounding due in a year.

Q: 8. Find the nominal rate under which $3500 is the present value of $5000, due at the end of 123…

A: Note: I am suppose to provide the solution of one question at a time. Please repost the remaining…

Q: If i= 14.8% per year, compounded monthly, What is the effective interest rate per semiannual? (ABET…

A: Lets understand the basics For calculating semi annual interest rate from monthly compounded…

Q: find the present value of the given future payment at the specified interest rate 2.$460 due in four…

A: Formula = PW=FW/[ (1 + r/n )^n*T  PW= Present Worth FW = Future Worth n = No of compouding periods…

Q: Security A and security B both provide semi anual payment of 89 over 5Year. the annual rate of…

A: There are two types of annuity  Deferred annuity  Annuity due Deferred annuity means cash flow…

Q: Calculate t. (a) 176 (b) 187 (c) 195 (d) 204 (e) 212

A: Amortization is the process of gradually repaying the loan. In an amortizing loan, a portion of each…

Q: What annual payment must you receive in order to earn a 6.5% rate of return on a perpetuity that has…

A: The objective of the question is to find out the annual payment that one must receive to earn a 6.5%…

Q: uiva 6 1264%

A: Given information : Effective rate = 6% Times of compounding = 4

Q: Estimate the compound interest along with principal payable in second year when amount of loan is…

A: Given values : Principal = $ 10000 Interest rate = 8 % Time period = 2 years Compound interest.

Q: each month for 2n mc Lrengid Find n

A: Monthly interest rate is 24% =0.24= 0.2 Time period of the loan =2n months  Need to calculate n…

Q: A6) Finance If $150 is placed in an account that earns a nominal annual interest rate of 6 percent,…

A: To calculate the future value we will use the below formula   Future value = P*[1+(r/m)]t*m Where P…

Q: How much amount should an investor deposit in an account earning a continuously compounded interest…

A: Time Value of Money states that a dollar today is worth more than anytime in the future. This is…

Q: ind the future values of the following ordinary annuities.

A: Future Value of Ordinary Annuity: It refers to the future worth of the annuity cash flows made at…

Q: Which of the following compounding rates is equivalent to an effective interest rate of 2.75% p.a.?

A: When the compounding frequency per year is not 1 then in that case the stated interest rate will not…

Q: 14. An investment earns an annual interest rate of 12 percent compounded quarterly. What is the…

A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…

Q: Find the future values of the following ordinary annulties: a. FV of $500 paid each 6 months for 5…

A: The time value of money is a concept in finance that use the effects of compounding to evaluate the…

Q: Compute the nominal rate of intrrest at which $980 deposited at the end of eaach month quaretly for…

A: Nominal interest rate is the rate of return without considering the inflation rate or before…

Q: Q2: a) What rate, compounded semi-annually, is equivalent to 10% compounded quarterly? m NOM EFF m…

A: Compound = n = Semiannually = 2Interest Rate = r = 10%

Q: years and nine mo pounded quarterly

A: Answer : Future value = $26,500 Interest rate = 11% Time = 2  years 9 month = 2.75 Years  Compounded…

Q: Use the appropriate amortization formula to find (a) the monthly (n=12) payment on a loan with the…

A: Amortization means the amount of Principal and interest paid each month over the course of your loan…

Q: 7. At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: What is the effective annual interest rate if the nominal annual interest rate is 24% per year…

A: EAR is the effective annual rate of interest paid/received on a sum of money after taking…

Q: 14. An investment earns an annual interest rate of 12 percent compounded quarterly. What is the…

A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…

Q: Bass the following conditions, find the amount future, considering a amount initial of ¢600,000.00…

A:

Q: $1,500 $1,400 $1,300 $1,200 $1,100 $1,000 ... 2. 5. 6 7 8 3 EOY i = 30%/yr. is equivalent to

A: The present value is the value of the sum received at time 0 or the current period. It is the value…