Find the equivalent interest rates for the following: a. Nominal interest rate compounded quarterly that is equivalent to 5% compounded semi-annually. % Round to two decimal places b. Nominal interest rate compounded monthly that is equivalent to 3.8% compounded quarterly.

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: nk quotes you an interest rate of 6.6% per annum with quarterly compounding. What is the equivalent…

A: In compounding there is interest on interest including the interest on the principal amount also due…

Q: Suppose you make quarterly deposits into an account that earns 6% annual interest compounded…

A: Interest rate (r) = 6% Number of compounding per year (m) = 12

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: The nominal annual rate of interest is 7%, compounded monthly. Compute the real rate of interest if…

A: Nominal rate of interest is the given rate. This rate does not consider the impact of the…

Q: What is the difference between computing interest at a nominal annual rate of interest and computing…

A: The interest rate which is taken into account before considering inflation is called the nominal…

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: Given i(26) = 6.375 %, find the equivalent nominal interest rate compounded monthly. Question…

A: Given information, Nominal interest rate compounded bi-weekly (i) = 6.375% or 0.06375Compounding…

Q: For the following investment, find the total number of compounding periods and the interest rate per…

A: Compounding periods = Years * Number of time compounded Compounding periods =8*4 Compounding periods…

Q: An interest rate is quoted as 3.75% per year compounded quarterly, what is the effective semi-annual…

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

Q: etermine the simple interest.​ (The rate is an annual rate unless otherwise stated. Assume 360 days…

A: The question is based on the concept of Financial Management.Basically, there are two types of…

Q: What is the equivalent effective rate of interest compounded quarterly if the ne is 19.5%? O 20.97%

A: Effective rate is interest rate after considering the effect of the compounding and while nominal…

Q: Determine the annual rate of interest compounded daily that is equivalent to 9% per annum compounded…

A: Interest rate per annum = 9% Monthly Interest Rate(r) =9%/12 = 0.75% Number of terms(n) = 1*12 = 12…

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 nominal annual rate of interest compounded semi-annually that is equivalent to 5.5%…

A: Compounding refers to the effect of the frequency of receiving interest on the total value of the…

Q: If the effective annual interest rate is 12.82% and the nominal annual rate is 12.25%, compounding…

A: Effective Annual Rate = 12.82% Nominal Annual Rate = 12.25%

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 the effective annual interest rate is 10%, what is the nominal annual rate if compounding is bi-…

A: Interest rate refers to the percentage at which a borrower pays the interest amount on the loan…

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: d the equivalent interest rates to the given nominal interest rates. a. Nominal interest rate…

A: Nominal interest rate is the simple interest without considering the impact of compounding on the…

Q: 1. The semiannual interest rate equivalent to an effective monthly rate of 0.90% is equal to_ 2.…

A: In this problem we have to calculate effective interest rate and nominal interest rate.

Q: find the nominal annual rate of interest compounded semi-annually that is equivalent to 8.6%…

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

Q: Compute the periodic interest rate, as a decimal, given a nominal interest rate and compounding…

A: Interest: Interest is the amount of interest paid on the issue price of the notes by the issuer at…

Q: If the annual interest rate is 12.9% and the dollar amount compounds daily, you would ( a. multiply…

A: Data given: Annual Interest rate=12.9% compounded daily. (Annual means N=1 year)

Q: Assume an effective compound interest rate i = 5% per annum. Compute the following equivalent rates.…

A: The effective rate of return considers the effect of the compounding frequency and refers to the…

Q: Consider the following term structure of interest rates: Maturity Interest Rate 1-year 4.6% 2-year…

A: Forward rates are the rates that would be applicable after a specified number of years, whereas spot…

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,…

Q: Find the equivalent interest rates to the given nominal interest rates. a. Nominal interest rate…

A: The nominal interest rate refers to the return that the investment earns if the effects of…

Q: Find the nominal rate compounded annually equivalent to the rate of interest of 8 % compounded…

A: Nominal interest rate is the rate which is the rate before adjusting inflation rate. It is the…

Q: What is the periodic interest rate for an APR of 23% with daily compounding? Enter your answer…

A: Compound = n = Daily = 365Interest Rate = r = 23%

Q: 2. Find the effective rate of interest per annum corresponding to the nominal rate of interest 8%…

A: Because you have postged mutiple questions, we will answer the first question only. For the…

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: Find the effective annual rate of interest equivalent to a nominal rate of interest of 4.8%…

A: The effective annual interest rate is the real return on a savings account or any interest-paying…

Q: Calculate the nominal rate of interest convertible monthly that is equivalent to nominal rate of 12%…

A:

Q: An interest rate is quoted as 4% per annum with quarterly compounding. What is the equivalent rate…

A: If R and r are the interest rate with compounding frequency of i and j respectively, in a year then:…

Q: Given an Annual Percentage Rate (APR) of 0.072 with quarterly compounding, the equivalent interest…

A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…

Q: If the interest rate is stated as 2.2% per 6 months compounded continuously, the effective annual…

A: Here, Interest Rate Per 6 Month is 2.2% Therefore, Annual Interest Rate is: =2.2% ×2=4.4%…

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.