An account has a nominal rate of 6.6%. Find the effective annual yield, rounded to the nearest hundredth of a percent, with quarterly compounding, monthly compounding and daily compounding. How does changing the compounding period affect the effective annual yield?

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A: Annual Precentage Yield = (Annual interest / Principal amount ) x 100Note : 365 days = 1 year

Q: An account has nominal rate of 5.7%. Find the effective annual yield, rounded to the nearest…

A:

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A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

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A: To calculate the effective annual rate we will use the below formula   Effective annual rate =…

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A: We can calculate effective yield by using this equation Effective yield =1+rmm Where r= nominal…

Q: Estimate the effective annual rate (EAR) for a continuously compounded annual nominal rate of 9.00%.

A: Given,             The nominal rate is 9.00%          The formula of EAR (continuous compounding)…

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A: Effective yield refers to return on bond that has its interest payments and is calculated by…

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A: Here, To Find: Part A. APY (Annual Percentage Yield) =? Part B. Higher yield offered =?

Q: You deposit $10,000 in an account that pays 4.5% interest compounded quarterly. Use the future value…

A: Interest rate (r) = 4.5% compounded quarterly Hence, compounding frequency (k) = 4

Q: An interest rate is quoted as 3.75% per year compounded quarterly, what is the effective daily rate?

A: The objective of the question is to calculate the effective daily interest rate from a given annual…

Q: If a bank was offering a nominal rate of return of 12% compounded monthly, what is the annual…

A: Formula: Annual effective rate = ( 1 + r / N )N - 1 R = rate of return N = Period

Q: An account that compounds interest daily has an annual percentage yield of 5.9%.  What is the annual…

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Q: You currently earn 8% per annum with quarterly compounding. What is the equivalent interest rate…

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A: The objective of this question is to find the effective weekly interest rate from a given annual…

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A: In the above question we require to compute the effective annual yield from below details : Nominal…

Q: An interest rate is quoted as 3.75% per year compounded quarterly. What is the effective daily rate?

A: The objective of the question is to calculate the effective daily interest rate from a given annual…

Q: An interest rate is quoted as 3.75% per year compounded quarterly, what is the effective weeky rate?

A: The objective of this question is to find the effective weekly interest rate from a given annual…

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Q: To be equivalent to 10.6% compounded quarterly, what must be the nominal rate with: (Do not round…

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A: Interest Rate period: It is the period (in years) in which interest is charged. Compounding…

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A: APR and APY are two important concepts with reference to the interest rate. APR shows number of…

Q: per corresponding nominal rate of discount compounded every 6 months?

A: Effective rate is the interest rate after considering the impact of compounding on interest and the…

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A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Annual percentage yield) Compute the cost of the following trade credit terms using the compounding…

A: APR means the annual percentage rate, which represents both the interest rate on the loan as well as…

Q: what is the annual percentage yield for an account that earns 6.1 % intreast compounded continously

A: annual percentage yield (APY) is the return earned on  a deposit taking into consideration the…

Q: A bank pays interest at the nominal rate of 3.8% per year. What is the effective annual yield if…

A: Effective Annual Yield: It refers to the rate of return entitled to an investor for a period of…