What amount will be accumulated by Php 1,520 in 10 semi annuals at 6% compounded bi-monthly? What effective annual interest rate corresponds to the following situations? a. nominal interest rate of 4% compounded bi-monthly b. nominal interest rate of 5% compounded quarterly c. nominal interest rate of 6% compounded continuously

What amount will be accumulated by Php 1,520 in 10 semi annuals at 6% compounded bi-monthly? What effective annual interest rate corresponds to the following situations? a. nominal interest rate of 4% compounded bi-monthly b. nominal interest rate of 5% compounded quarterly c. nominal interest rate of 6% compounded continuously

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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Which one of the following represents the highest effective interest rate per year? Select one: O a 10.5% per year, compounded semiannually O b. 10.4% per year, compounded daily Oc 10% per year, compounded quarterly Od. 10% per year, compounded monthly O e. 9.8% per year, compounded continuously
A bank offers a fixed term deposit investment account with an interest rate of 6.5% per annum compounding quarterly how do I work out what the equivalent effective interest rate is
Which one of the following represents the highest effective interest rate per year? Select one: O a. 10.5% per year, compounded semiannually Ob. 10.4% per year, compounded daily O c. 10% per year, compounded quarterly O d. 10% per year, compounded monthly O e. 9.8% per year, compounded continuously
calculate the periodic rate of interest (i) in the following case: 3.6% p.a compounding semi annually for 4 years
Assume an effective compound interest rate 6% per annum. a) The nominal interest rate payable semi-annually b) The effective interest rate payable quarterly c) The effective rate of discount per annum d) The nominal rate of discount payable monthly
A total of $66,000 is borrowed and repaid with 48 monthly payments, with the first payment occurring one month after receipt of the $66.000. The stated interest rate is 5.00% compounded quarterly. Part a What is the intereste rate per cash flow period (month)? Round entry to six decimal places. Tolerance is +0.0005. B.) What monthly payment is required?
If the Effective Annual Rate of interest is 5.21% assuming quarterly compounding, then what is the nominal annual rate? a) Nominal Interest Rate of 6.25% compounded annually over 4 years b) Nominal Interest Rate of 5.50% compounded monthly over 5 years c) Nominal Interest Rate of 5.75% compounded annually over 6 years d) Nominal Interest Rate of 6.00% compounded quarterly over 5 years
Show complete solution If the account earns an interest rate of 24% compounded monthly, Find the effective rate of interest per? a. Compounded Daily (360 Days) b. Compounded Daily (365 Days) c. Compounded Weekly d. Compounded Monthly e. Compounded Quarterly f. Compounded Semi-Annually g. Compounded Annually
Compute for the Effective Interest Rate Payment Period = Quarter 1. 10% Compounded Yearly = Blank 1 2. 10% Compounded Semi-annually = Blank 2 3. 10% Compounded Quarterly = Blank 3 4. 10% Compounded Bi-monthly Blank 4 5. 10% Compounded Monthly Blank 5 6. 10% Compounded Continuously Blank 6
What is the nominal annual rate of interest compounded semi-annually if deposits of $224 made each month for 4.0 years accumulate to $12,700? The nominal annual rate of interest is % compounded semi-annually. (Round to two decimal places as needed.)
Which of the following give the highest amount of interest for depositing the same amount of money for 2 years? 5% annual interest rate, no compounding ○ 4.94% annual interest rate, compounding semi-annually 4.92% annual interest rate, compounding monthly 4.9% annual interest rate, compounding daily 4.88% annual interest rate, compounding continuously
What is the effective annual interest rate for 10.5% compounded (a) Semiannually ? (b) quarterly ? (c) monthly ? (d) weekly ? (e) daily ? (f) Hourly ? (g) every minute ? (h) continuously ?

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