if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interesta) per yearb) per semiannualc) per bi monthd) per quarterc) per two yearsUse the editor to format your answer

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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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Similar questions

Find i (the rate per period) and n (the number of periods) for the following loan at the given annual rate. Monthly payments at $291.40 are made for 8 years to repay a loan at 6.8% compounded monthly. (Type an integer or decimal rounded to four decimal places as needed.) Find i (the rate per period) and n (the number of periods) for the following loan at the given annual rate.
How to find N and the monthly payment values?
Assume time is measured in years and today is time 0. A payment stream is due to start in 7 years' time from today. 12 annual payments in advance, each of amount 99, will be made. Thus the first payment is made at time 7. Assuming the effective rate of interest is 4% per annum, calculate the value at time 0 of the payment stream. Give your answer to 2 decimal places.
For each of the following cases, indicate (a) what interest rate columns and (b) what number of periods you would refer to in looking up the future value factor. (1) In Table 1 (future value of 1): Number of Annual Rate Years Invested Compounded Case A 5% 5 Annually Case B 8% 6 Semiannually Case A Case B . (a) % % (2) In Table 2 (future value of an annuity of 1): Annual Rate Number of Years Invested Compounded Case A 6% 9 Annually Case B 8% 5 Semiannually Case A Case B (b) periods periods (a) (b) % periods % periods
es If you borrow $6,100 at $510 interest for one year, what is your annual interest cost for the following payment plan? (Round the final answers to 2 decimal places.) a. Annual payment b. Semiannual payments c. Quarterly payments d. Monthly payments Effective rate
Please use a handrawn timeline to solve this
What is the effective interest rate per payment period for an interest rate of 12% compounded monthly when the payment is quarterly ? Select one: a.0.06 b. 0.5 c. 0.12 d. 0.4 e.0.03
Assume that you take out a $2000 loan for 30 months at 9% APR. What is the monthly payment? (Round your answer to the nearest cent.)
Create an amortization table for a $60,000 loan. We will assume payments are made monthly over 6 years at an interest rate of 4%. a.) First use a formula cell in your spreadsheet to calculate the monthly payment amount. b.) Create an amortization table for the 72 months. Your columns of your amortization table should include payment number, payment amount, interest paid each month, principle paid that month, amount paid on principal total, and the amount of principal remaining.
Compound Interest Applications Use the TVM Calculator to solve the following compound interest problem. Round your result to two decimal places as needed. Meri invests $12, 000 in an account. The interest is compounded monthly for 18 years. The account balance will be $92, 501.14 at the end of 18 years. What is the annual interest rate? The annual interest rate is %.
For a sum of 1,050 to triple itself in 8 years and 6 months, what must be the rate of interest compounded semi-annually? (Finding the rate by linear interpolation)
Find the interest rate per compound period Principal: 50,000 Future Value: 144,860 Term: 2.5 years interest compounded: Monthly find the interest rate per period Please show the step by step solution (so that I can understand how the rate was computed)

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if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest a) per year b) per semiannual c) per bi month d) per quarter c) per two years Use the editor to format your answer