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
- If the annual percentage rate (APR) of an investment is 12% compounded quarterly, what is the effective annual rate (EAR)? Multiple choice question. 3.00% 26.25% 12.55% 57.35%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 ABCD
- Annualized 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%
- 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. 11.25% 12.23% 10.51% 13.45%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 SearchInvestment End of Year A B C 1 $ 13,000 $ 18,000 2 13,000 3 13,000 4 13,000 5 13,000 $ 13,000 6 13,000 54,000 7 13,000 8 13,000 9 13,000 10 13,000 18,000 Assuming an annual discount rate of 23 percent, find the present value of each investment. a. What is the present value of investment A at an annual discount rate of 23 percent? b. What is the present value of investment B at an annual discount rate of 23 percent? c. What is the present value of investment C at an annual discount rate of 23 percent?
- Problem 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 P1,126,492.59The 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%Y2 Aportfolio manager states that the return for the period is 5.34 per cent by using the following annual rates of returm Year. Return 1. 6% 2 -37% 3. 27% What type of rate of return (HPR AM or GM) said by the manager and why?
