term of investment nomial (annual) rate (%)intrest compoundedcompounding periods rate per period (%)5 years 3monthly60

The missing value refers to the rate per period. In this question, the compounding is done monthly.…

Answered: rate per period (%)

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Finance

rate per period (%)

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 22PROB

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Concept explainers

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.

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term of investment	nomial (annual) rate (%)	intrest compounded	compounding periods	rate per period (%)
5 years	3	monthly	60

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