If the annual percentage rate (APR) of an investment is 12% compounded quarterly, what is the effective annual rate (EAR)? Multiple choice question. 26.25% 57.35% 12.55% 3.00%
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If the annual percentage rate (APR) of an investment is 12% compounded quarterly, what is the effective annual rate (EAR)?
26.25%
57.35%
12.55%
3.00%
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- The effective annual rate of an investment with a nominal annual rate of 9% compounded monthly is closest to _____. Group of answer choices 9.00% 9.31% 9.38% 10.47%2. A P100 investment yields P112.55 in one year. The interest on the investment was compounded quarterly. From this information, what was the stated rate or APR of the investment? a.12.55%b.12.25%c.12.15%d.12.00%Consider the following investment alternatives: Investment Rate Compounding 6.917% Annual 6.7123% Daily Quarterly Monthly 6.792% 6.7775% Which alternative offers you the highest effective rate of return? O A. Investment A O B. Investment B O C. Investment C O D. Investment D ABCD
- Calculate the APR of the following investment, entered as a percentage (Example: if your answer is 14.5%, enter 14.5 and not 0.145) Year Number Cashflow 0 -11000 1 3000 2 3500 3 2900 4 2800Consider the following investment alternatives: Investment Rate Compounding A 6.502% Annual Daily Quarterly 6.3234% C 6.3969% 6.3867% Monthly Which alternative offers you the highest effective rate of return? A. Investment A B. Investment B C. Investment C D. Investment DInvestment If $5000 is invested for 6 years atinterest rate r (as a decimal), compounded annually, the future value of the investment is given byS = 5000(1 + r) 6dollars.a. Find the future value of this investment for selectedinterest rates by completing the following table. b. Graph this function for 0 <= r <= 0.20.c. Compute the future value if the rate is 10% and20%. How much more money is earned at 20%?
- If the Nominal (APR) rate of return for an investment is 10.15% compounded quarterly, what is the Effective Annual Rate of return (EAR or EFF)?Calculate the future value of an investment if the annual interest rate is 9%, number of payments is 30, and each payment of $1000 is made at the end of the year. A. $102,893 B. $136,308 C. $108,212 O D. $98,234Baghiben
- An investor receives $1,050 in 6 months in return for an investment of $1,000 now. What is the equivalent annual nominal return on this investment with continuous compounding? a. 10.00% b. 4.88% c. 9.76%Find the annual percentage yield for an investment at the following rates. (Round your answers to two decimal places.) (a) 7.9% compounded monthly %(b) 6% compounded continuously %According to the Rule of 72, what must the return on an investment be to double an initial investment of $1,000 in 7 years? Multiple Choice 10.41% 2% 8.63% 10.29% 7.2% Show all steps of calculation and formulas if necessary