Question Mode Multiple Choice Question If the annual percentage rate (APR) of an investment is 10% compounded weekly, what is the effective annual rate (EAR)? Assume 52 weeks in a year. Multiple choice question. 13.45% 12.23% 11.25% 10.51%
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Question Mode
Multiple Choice Question
If the annual percentage rate (APR) of an investment is 10% compounded weekly, what is the effective annual rate (EAR)? Assume 52 weeks in a year.
13.45%
12.23%
11.25%
10.51%
Step by step
Solved in 2 steps
- Consider 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 DConsider 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 ABCDAnnualized Holding Period Returns An investor has a 5.5% HPR on a 11 month investment. What is the annualized rate of return with compounding? Multiple Choice 5.96% 6.12% 6.07% 6.01%
- Calculate the geometric return of an investment with five year returns of 10%, (15%), 12%, 8% and (5%). Multiple Choice О 2.00% О 6.33% О 3.11% О 7.44% О 5.22%What is the Effective Annual Return (EAR) if the Annual Percentage Rate (APR) is 15% compounded monthly? Select one: a.16.08% b.15.7% c.15% d.16.55%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
- Consider the following investment alternatives: Compounding Annual Investment A B Daily Quarterly Monthly The highest effective rate of return you could earn on any of these investments is closest to: C D Rate 6.102% 5.9471% 6.015% 6.0087% OA. 6.102% OB. 6.152% OC. 6.127% OD. 6.177% Q SearchProblem 4. Which of the following investment opportunities all maturing at the end of 2 years and requiring the rate of return of 6% would you choose? Investment Compounding Future Value 1 Annually P1,123,600.00 Monthly Quarterly 2 P1,127,159.78 3 P1,126,492.59Tools Introductory ce An investment will pay $150 at the end of each of the next 3 years, $250 at the end of Year 4, $350 at the end of Year 5, and $500 at the end of Year 6. a. If other investments of equal risk earn 4% annually, what is its present value? Round your answer to the nearest cent. $ b. If other investments of equal risk earn 4% annually, what is its future value? Round your answer to the nearest dent. D
- Excel Project and Excel Solution Ten annual returns are listed below.-19.9% 16.6% 18.0%-50.0% 43.3% 1.2%-16.5% 45.6% 45.2%-3.0% What is the arithmetic average return over the 10-year period? What is the geometric average return over the 10-year period? If you invested $100 at the beginning of the period, how much would you have at the end?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%Investment 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%?
