What is the effective interest rate per quarter if the interest rate is 14 % annually compounded monthly?

Q: What is the present value of $8,000 to be received eight periods from today assuming a compound…

A: The present value refers to the value of future cash flows at present. The future value is…

Q: A credit card company compounds monthly and charges an interest of 1 ½ % per month. What is the…

A: Effective Interest Rate It is a rate that discounts the approximate future cash flows over the…

Q: he effective annual interest rate is 15%. A) Assume interest is compounded monthly. What is the…

A: The effective annual interest rate is the real return on a savings account or any interest-paying…

Q: What is the nominal annual interest rate if the effective annual rate is 5.5% and compounding is…

A: In this question the compounding is continuous so the nominal rate needs to be converted to…

Q: What nominal annual discount rate compounded semiannually is equivalent to a nominal rate of…

A: Nominal Interest Rate: When the market inflation is not taken into consideration while computing the…

Q: You are told that the nominal rate of interest is 3.7% per 4 months payable monthly. Calculate the…

A: The Effective Annual Rate (EAR), also called the Annual Equivalent Rate (AER) or maybe the…

Q: What is the effective annual interest rate when 12% per year is compounded quarterly? 0.13 or 0.23?

A: In this we have to calculate the effective interest rate annually.

Q: What amount can you borrow if you make nine quarterly payments of $5,300 at a 16% annual rate of…

A:

Q: If the effective annual interest rate is 15% then what is the equivalent annual rate compounded…

A: Effective annual rate (EAR) = 15% Number of compounding per year (m) = 4

Q: You are told that the nominal rate of interest is 3.46% per quarter year payable monthly. Calculate…

A: Nominal Rate of Interest = r = 3.46%Interest rate compound = rc = Quarterly = 4Payable Compound = pc…

Q: What is the future value of $400 in 15 years assuming an interest rate of 14 percent compounded…

A: Today deposit=$400Period=n=15 years=30 semi annual periodsInterest rate=14%Semi annual rate=r=7%

Q: 1. If the effective annual interest rate is 15% then what is the equivalent: Semi-annual rate…

A: To compute the nominal rate through effective rate then we consider the following…

Q: What annual interest rate is earned by a 20​-week T-bill with a maturity value of $2,900 that sells…

A: The time value of money states that the money we have today has more worth than the money we are…

Q: f the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate…

A: Nominal rate = 11.5% compounded continuously We need to find bi-monthly rate, where there are 24…

Q: For an effective interest rate of 16% per annum, what is the equivalent nominal annual rate…

A: The periodic interest rate is multiplied by the number of periods in a year to create the nominal…

Q: If the interest rate is 9%, what is the two-year discount rate?

A: In DCF, the Discount rate refers to the discounting factor representing the time value of money.

Q: For an interest rate of 2% per month, find (a) the effective rate per quarter, and (b) the effective…

A: The effective interest rate is the rate that is charged by the lender from the borrower for the cost…

Q: if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate…

A: Since you have asked a question with multiple parts, we will solve the first 3 parts as per policy.…

Q: Express the term Effective interest rate per payment period, quarterly payments with weekly…

A: The term Effective interest rate per payment period  is the interest rate that is computed for…

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.