If 16% pa is an annual percentage rate (APR) compounding every quarter, which of the following is NOT correct? All percentages are given to 5 decimal places. a. Effective quarterly rate is 4.00000% per quarter. b.Continuously compounded semi-annual rate is 7.84414% per half year. c. Continuously compounded quarterly rate is 3.92207% per quarter. d. Effective monthly rate is 1.84756% per month. e. The annual percentage rate (APR) compounding every month is 15.79128%.
If 16% pa is an annual percentage rate (APR) compounding every quarter, which of the following is NOT correct? All percentages are given to 5 decimal places. a. Effective quarterly rate is 4.00000% per quarter. b.Continuously compounded semi-annual rate is 7.84414% per half year. c. Continuously compounded quarterly rate is 3.92207% per quarter. d. Effective monthly rate is 1.84756% per month. e. The annual percentage rate (APR) compounding every month is 15.79128%.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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If 16% pa is an annual percentage rate (APR) compounding every quarter, which of the following is NOT correct? All percentages are given to 5 decimal places.
a. Effective quarterly rate is 4.00000% per quarter.
b.Continuously compounded semi-annual rate is 7.84414% per half year.
c. Continuously compounded quarterly rate is 3.92207% per quarter.
d. Effective monthly rate is 1.84756% per month.
e. The annual percentage rate (APR) compounding every month is 15.79128%.
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