consider account APR of 4.6% find  APY and daily compounding. Comment on how changing the compounding period affects the annual yield. Question content area bottom Part 1 When interest is compounded​ quarterly, the APY is     enter your response here​%.  ​(Do not round until the final answer. Then round to two decimal places as​ needed.)

Q: An amount of $1200.00 earns $300.00 interest in four years, nine months. What is the effective…

A: Amount (PV) = $1200 Interest = $300 Final Amount (FV) = $1200 + $300 = $1500 Time (NPER) = 4 x 12 +…

Q: What monthly compounded nominal rate would put you in the same financial position as 7.0% compounded…

A: Let the monthly compounded nominal rate of interest = iIt is given that the effective rate of the…

Q: If you deposit $150 in an account with an APR of 6% and continuous compounding, the balance after 2…

A: Information Provided: Principal = $150 APR = 6% Time = 2 years

Q: Scheduled payments of $730 due today, $945 due in 3 months, and $935 due in 6 months are to be…

A: The time value of money mentions that the value of money changes with time. The worth of the money…

Q: Find the future value. (Use the Table provided.) (Do not round intermediate calculations. Round the…

A: In finance, the concept time value of money states that the dollar amount available today in hand is…

Q: What is the nominal annual rate of interest compounded monthly at which ​$1663.00 will accumulate to…

A: Number of monthly periods = Number of years×12 =3.25×12=39 Monthly interest rate is calculated using…

Q: ncipal, Nominal (P) Interest Conversion Interest Time in Total Compo rate, (r) compounded period per…

A: In compound interest as number of compounding increases than effective rate tend to increase.

Q: Use the present value table to complete: (Round the "PV factor" to 4 decimal places and final answer…

A: Given, Future amount = $11,000   Number of periods = 6 years*4 Number of periods = 24   Rate = 12%/4…

Q: Account A compounds monthly.  Account B compounds quarterly.  Both have an APR of 9%.  All else…

A: In this question, we are required to determine which account has the higher EAR.

Q: An investment of $837.00 earned interest quarterly. If the balance after 7 years was $1251.24, what…

A: Initial investment = $ 837Future value = $ 1251.24No of years = 7Number of quarters = 7*4= 28Find…

Q: Suppose that $6,000 is invested in a 6-month CD with an APY of 1.8%. Complete parts (a) through (d)…

A: Annual Percentage Yield = APY = 1.8%Compound = n = 6 months = 2

Q: Find the EAR

A: Effective annual rate (EAR) is the real return on an investment. It is also called effective…

Q: what would be the value of a saving account started with 2800, earning

A: The estimated value of a financial asset or investment at a particular future date, accounting for…

Q: If i= 6.2% per semiannual, compounded monthly, What is the nominal quarter rate. (ABET, SO1)

A: The effective annual rate of interest is the actual or the real rate of interest paid or received…

Q: Solve by using compound table: (Round your answers to the nearest cent.) # of Periods to be…

A: Compound Interest: Compound interest is the premium one procures on interest. In contributing,…

Q: What is the present value of $39,000 to be received at the end of each of 20 periods, discounted at…

A: Present value means value in the present of the sum of money in contrast to some future value it…

Q: 4. What account should you invest your money in? (Hint. Calculate the APY of each account)  Account…

A: 1. APR= 3%, annual compounding 2. APR =2.75% monthly compounding

Q: (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) What…

A: Present value (PV) is the current value of a future sum of money or stream of cash flows given a…

Q: interest rate per conversion period b. future amount c. compound interest d. conversion period per…

A: Interest rate per conversion period:  = Nominal Rate/ 4 = 2%/4  = 0.5%

Q: find the effective rate for an investing earning 3.15% per year. compounded quarterly

A: Using excel Effective rate function

Q: Complete the following using the present value formula or financial calculator. Note: Do not round…

A: Amount desired at the end of the period = $7,300Number of years = 5 yearsInterest rate = 4%

Q: he APY c ompounde PY is

A: APY means Annual Percentage Yield .  It tells us that if you invest some amount how much total…

Q: If the monthly rate is 6.08 %, what is the APR? Enter your answer using percent expression with two…

A: Compound = n = Monthly = 12Interest Rate = r = 6.08%

Q: The effective annual rate (EAR) for a savings account with a stated APR of 4% compounded daily is…

A: Effective Annual Interest Rate Effective annual interest rate refers to the actual rate of interest…

Q: Using either logarithms or a graphing calculator, fnd the time  required for each initial amount to…

A: Principal = $4500 Annual interest rate = 3.6% = 0.036 Number of compounding periods per year =12…

Q: Manually calculate the compound amount and compound interest for the following investment. Round…

A: Compounding period can be defined as the duration or length of time from one interest payment to…

Q: Calculate the annual effective rate equivalent to a nominal rate of 8.84% compounded quarterly.…

A: Given: Nominal rate for quarterly compounding = 8.84% Annual effective rate = (1 + rq/ n)n -1 where…

Q: Complete the following using the financial calculator: (Round your final answer to the nearest…

A: Compounding is the method through which income from an asset, such as interest or capital gains, is…

Q: Deposits of $1,320 are made into an account at the beginning of every 6 months for 2 years and 6…

A: Deposits made are of $1,320 Type of payment is begining of the period Interest rate is 3.07%…

Q: Using Table 11-1, calculate the compound amount and compound interest (in $) for the investment.…

A: An interest method in which current interest is computed by multiplying the interest rate by the sum…

Q: Stated Rate (APR) Number of Times Compounded 9.7 % Quarterly 18.7 Monthly 14.7 Daily 11.7 Infinite…

A: Effective Annual Rate is the actual rate earned on any investment when the interest is earned more…

Q: Complete the following table: (Use Table 15.1.) Note: Round your intermediate calculations and final…

A: The process of amortization is used to account for the progressive reduction of a liability or to…

Q: Find the EAR in each of the following cases: (Assume 365 days in a year. Do not round intermediate…

A: APRNumber of times compounded9.8%Quarterly18.8%Monthly14.8%Daily11.8%InfiniteNumber of days in a…

Q: Find the Present Value given following scenarios. Round off your answers in two decimal places…

A: Present Value of annuity refers to the current value of a series of equal cash flows or payments at…

Q: Calculate the simple interest earned. Round to the nearest cent. P = $3600, r = 5.3%, t = 6 months

A: The effective annual rate of interest is the actual or the real rate of interest paid or received…

Q: 2. Over the last five years, you have earned the following returns on the NZX Year (ending in March)…

A: Note: The question mentions over the last 5 years. However, the data is for the last 9 years. Hence,…

Q: Example: You will receive three payments: $1,000, $2,000 and $3,000 on March 1, May 1 and December 1…

A: Due Date Amount receivedMarch 1 Amount received on March 1=$1,000May 1 Amount received on May…

Q: Account A has a monthly rate of 0.4%.  Account B has a quarterly rate of 1.2%.  All else equal,…

A: APR stands for annual percentage rate. This is the annual rate without taking the compounding…

Q: Question 15 A bank offers an APR of 3.25% compounded semiannually.Find the annual percentage yield…

A: An annual percentage yield is referred to as the real rate of return, which helps in obtaining the…

Q: USE 4 DECIMAL PLACES Nominal Rate 5% compounded semi annually 5% compounded quarterly 5% compounded…

A: Interest rate is used to calculate the future value and or present value of investments. Though…