An investment pays you 9% interest, compounded quarterly. What is the periodic rate of interest? What is the nominal rate of interest? What is the effective rate of interest?

Q: Find the effective rate of  interest if the nominal rate is 12 % compounded bi - monhtly.

A: Annual Nominal interest rate = 0.12 Number of compounding in a year (n) = 6 (i.e. 12 months / 2)  Bi…

Q: Calculate the simple interest rate. (Round your answer to one decimal place.) P = $2400, I = $60, t…

A: Simple interest = Amount*rate*time in years

Q: What is the nominal annual interest rate if the effective annual rate is 5.5% and compounding is…

A: In this question the compounding is continuous so the nominal rate needs to be converted to…

Q: 4.  a.)  What is the future value of an annuity due with an annual payment of $1,500 for four years…

A: Future Value is that amount which includes the interest earned and investment value which is…

Q: What nominal annual discount rate compounded semiannually is equivalent to a nominal rate of…

A: Nominal Interest Rate: When the market inflation is not taken into consideration while computing the…

Q: What is the effective annual rate (EAR) if your credit card charges you 10.45 percent compounded…

A: The effective annual rate measures the rate of interest or return when the compounding is done on a…

Q: What is the interest rate if the principal amount is P2,000.00 and the interest is P500.00 for 6…

A: Interest = Principal * Rate * Time where, Interest = P500.00 Principal = P2,000.00 Time = 6 months =…

Q: If the payments are monthly how would you set up the present value?

A: The concept of present value asserts that a sum of money today is worth more than the same sum in…

Q: Considering an interest rate i=14% per year, what is the compound interest rate equivalent to the…

A: Interest rate is 14% per year To Find: Equivalent compounded  interest rate for 45 days Equivalent…

Q: f the interest is compounded monthly then m is equal to?

A: Compound Interest Compound Interest refers to the interest generated on principal as well as on the…

Q: The nominal interest rate on a loan is 12.5% and inflation is 3%. What is the real interest rate?

A: Information Provided: Nominal Rate = 12.5% Inflation = 3%

Q: iii) How much would an investor pay now (beginning of the month) for an annuity, which pays £1,500…

A: Present Value of Ordinary Annuity refers to the concept which dictates the discounted value of a sum…

Q: For any given interest rate and compounded frequency, there is always an equivalent compounded rate.

A: Effective annual compounding rate can be calculated for any given interest rate or compounding…

Q: what simple interest rate is equivalent to 1% compounded quarterly

A: Simple interest rate is the rate which does not compound means under this rate there is no concept…

Q: What is the effective annual interest rate when 12% per year is compounded quarterly? 0.13 or 0.23?

A: In this we have to calculate the effective interest rate annually.

Q: What is the equivalent effective rate of minal rate is 14.5%?

A: Nominal interest rate is interest rate without the impact of compounding but effective interest rate…

Q: What effective annual interest rate is equivalent to 9% compounded quarterly?

A: In this question we need to compute the effective annual interest rate compounded quarterly.

Q: earns an annual interest rate of 12 percent compounded Semi annually. What is the effective annual…

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

Q: If the rate of inflation is 6.5%, what nominal interest rate is necessary for you to earn 3.3% real…

A: Given information: Rate of inflation is 6.5% Real interest rate on investment is 3.3%

Q: 4. What is the effective annual interest rate i A savings account with 4% annual interest rate…

A: Details given to us are : Annual interest rate = 4% Compounding frequency = Monthly We need to…

Q: what nominal rate of interest compounded monthly is equivalent to 12% per annum compounded…

A: The nominal rate of interest is the rate of interest that is considered before taking inflation.

Q: What is the nominal rate of interest compounded semi annually which is equal to 8.81% compounded…

A: Interest rate (APR) = 8.81% Compounding per year (M) = 4

Q: Find the present values of these annuities due. a. What is the present value of $4,000 per month…

A: PMT=$4000 per monthNumber of payments=n=12Interest rate=4.8%Monthly interest rate=r=4.8/12=0.4%Find…

Q: 37. What rate of interest compounded quarterly will yield an effective interest rate of 7%?

A: The effective rate of interest is the rate under which the normal rate of interest is compounded for…

Q: Which table would show the largest factor for an interest rate of 3% for seven periods? Future…

A: Under the ordinary annuity, payments are made at the end of the relevant period while under annuity…

Q: If the compounded interest rate on 75 days time deposit is %16, calculate the simple rate?

A: Simple interest is a method of calculating the proportion of interest paid on an amount over a…

Q: Find the effective annual interest rate r of the given nominal annual interest rate. Round your…

A: Effective interest rate is interest rate considering the impact of compounding on interest rate.

Q: What is the effective rate of 16% interest compounded semiannually?

A: In this question we require to compute the effective rate of 16% interest compounded semi-annually

Q: At 8 percent interest rate per year (annual interest payment), how many years does it take to…

A: Answer: Calculation of the time it will take to quadruple the money: Formula, we will use here:…

Q: The annual interest rate is 12%. Find (a) the semi-annual rate, (b) the quarterly rate, (c) the…

A: semi-annual rate is the rate that is compounded twice a year (i,e) for every six months is called…

Q: What is the corresponding effective interest rate of 18% compounded semi-annually?

A: The effective interest rate is the real return earned on an interest-paying investment or savings…

Q: The (blank) interest rate is referred to as APR and the (blank) interest rate is the true rate…

A: Effective rate ( EAR) FORMULA: EAR =1+APRMM-1M = frequency of compounding

Q: Monthly interest rate?

A: Monthly interest rate is the interest charged on the unpaid balance of credit card.

Q: Suppose that you want to take out a loan and that your local bank wants to charge you an annual real…

A: Compute the nominal interest rate: Nominal interest rate is calculated by using following formula:

Q: What is the rate of interest per interest period if the nominal rate of interest is 25% compounded…

A: nominal rate of interest = 25% Compounded monthly No. of period = 12

Q: What is the effective interest rate corresponding to a nominal annual rate of. (Round your…

A: Whenever the impacts of compounding over time are considered, the effective annual interest rate is…

Q: ) An interest rate of 5% compounded quarterly is equivalent to what rate compounded monthly?

A: Using excel Effective and Nominal Rate function

Q: What nominal rate compounded quarterly can be charged to a payment at a nominal interest rate of 12%…

A: Effective Annual Rate The effective annual rate of interest is the actual or the real rate of…

Q: What is the effective rate (annually compounded rate) of interest corresponding to 9% compounded…

A: The effective annual rate (EAR) is the actual rate of interest that an investment earns over a year,…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.