If in 5.8% per semiannual, compounded manthly, What is the nominal quarter rate. CABET, SO1)
If in 5.8% per semiannual, compounded manthly, What is the nominal quarter rate. CABET, SO1)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![If i 5.8% per semiannual, compounded monthly, What is the nominal quarter rate.
(ABET, SO1)
Answer:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f3d476c-9981-4fed-bc44-493a866cb4e9%2Fed42ebcb-4e1a-4779-aafa-a0daab110f1c%2F06gpm4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:If i 5.8% per semiannual, compounded monthly, What is the nominal quarter rate.
(ABET, SO1)
Answer:
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question
![Calculate the equivalent FW at i= 10% per year for the
following net cash flow:
Year
Cash flow, $
-2,000
-2,000
3
-2,000
4.
4,600
5
4,600
4,600
Select one:
O a. 6415
O b. 5091
O c. 4429
O d. 5753
O e. 7077](https://content.bartleby.com/qna-images/question/8f3d476c-9981-4fed-bc44-493a866cb4e9/4d4e85bf-0c79-4cb7-aacb-6cc8efddb111/94zgygi_thumbnail.jpeg)
Transcribed Image Text:Calculate the equivalent FW at i= 10% per year for the
following net cash flow:
Year
Cash flow, $
-2,000
-2,000
3
-2,000
4.
4,600
5
4,600
4,600
Select one:
O a. 6415
O b. 5091
O c. 4429
O d. 5753
O e. 7077
Solution
Follow-up Question
![Find the uniform annual amount that is equivalent to a
uniform gradient series in which the first year's payment is
$6,800, the second year's payment is $6,550, the third year's
payment is $6,300, and so on, and there is a total of 10
payments. The interest rate is 8%.
Select one:
O a. 5832
O b. 6026
O c 5639
O d. 6219
O e 6413](https://content.bartleby.com/qna-images/question/8f3d476c-9981-4fed-bc44-493a866cb4e9/8c743788-ba4e-48fa-a288-731d9d9390b5/qwgyl3m_thumbnail.jpeg)
Transcribed Image Text:Find the uniform annual amount that is equivalent to a
uniform gradient series in which the first year's payment is
$6,800, the second year's payment is $6,550, the third year's
payment is $6,300, and so on, and there is a total of 10
payments. The interest rate is 8%.
Select one:
O a. 5832
O b. 6026
O c 5639
O d. 6219
O e 6413
Solution
Follow-up Question
![Find the value of the unknown quantity Z in the following
diagram, such that the equivalent cash outflow equals the
equivalent cash inflows when i= 18% per year,
compounded semiannually.
Ycars](https://content.bartleby.com/qna-images/question/8f3d476c-9981-4fed-bc44-493a866cb4e9/f6cfd5e8-0002-45e6-bf5a-2497451f1f5f/hc1drt6_thumbnail.jpeg)
Transcribed Image Text:Find the value of the unknown quantity Z in the following
diagram, such that the equivalent cash outflow equals the
equivalent cash inflows when i= 18% per year,
compounded semiannually.
Ycars
Solution
Follow-up Question
![What is the quarterly payment on a loan of $22,000 for 5
years at i= 8% per year, compounded semi-annually?
Assume that interperiod cash flows earn compound
interest (ABET, SO1)
Select one:
O a. 1220
O b. 1342
O c. 1281
O d. 1403
O e. 1464](https://content.bartleby.com/qna-images/question/8f3d476c-9981-4fed-bc44-493a866cb4e9/2976e97c-ef70-490c-8690-f55ad1ddc3e5/5hwjnit_thumbnail.jpeg)
Transcribed Image Text:What is the quarterly payment on a loan of $22,000 for 5
years at i= 8% per year, compounded semi-annually?
Assume that interperiod cash flows earn compound
interest (ABET, SO1)
Select one:
O a. 1220
O b. 1342
O c. 1281
O d. 1403
O e. 1464
Solution
Follow-up Question
![Identify the following interest rates as nominal or effective:
(ABET, SO1)
A: 1%= 6% per semiannual, compounded monthly
B: 1%= 7% per year, compounded quarterly
C: 1%= 1.4% per month
Select one:
O a. All of them are nominal
O b. A and C are effective, and B is nominal rate
O c. C is effective, and A and B are nominal rates
O d. All of them are effective
O e. A is effective, and B and Care nominal rates](https://content.bartleby.com/qna-images/question/8f3d476c-9981-4fed-bc44-493a866cb4e9/c39843c3-e8b1-4768-8069-61a7cc90f7ef/sotfxfe_thumbnail.jpeg)
Transcribed Image Text:Identify the following interest rates as nominal or effective:
(ABET, SO1)
A: 1%= 6% per semiannual, compounded monthly
B: 1%= 7% per year, compounded quarterly
C: 1%= 1.4% per month
Select one:
O a. All of them are nominal
O b. A and C are effective, and B is nominal rate
O c. C is effective, and A and B are nominal rates
O d. All of them are effective
O e. A is effective, and B and Care nominal rates
Solution
Follow-up Question
![How long does it take for $8,000 to become $12,500 when
the interest rate is 8% per year. (ABET, SO1)
Select one:
O a 72
Ob.7.8
Oc.58
O d.6.3
O e. 5.3](https://content.bartleby.com/qna-images/question/8f3d476c-9981-4fed-bc44-493a866cb4e9/075b0f85-2426-4581-bef7-418a638e30a4/unmnzw6_thumbnail.jpeg)
Transcribed Image Text:How long does it take for $8,000 to become $12,500 when
the interest rate is 8% per year. (ABET, SO1)
Select one:
O a 72
Ob.7.8
Oc.58
O d.6.3
O e. 5.3
Solution
Follow-up Question
![Maintenance costs for a machine with an expected 10-year
life are estimated to be $1,700 each year for the first 5 years
Followed by a $2,000 expenditure in year 8 and a $2,500
expenditure in the year 10. What is the equivalent present
worth cost? Assume i= 6% per year.
Select one:
O a.-10,233
O b.-11.497
Oc-9,812
O d.-8,127
O e.-6863](https://content.bartleby.com/qna-images/question/8f3d476c-9981-4fed-bc44-493a866cb4e9/0c5060d4-53b7-4324-b533-bb2fd6ec800f/3ann1qj_thumbnail.jpeg)
Transcribed Image Text:Maintenance costs for a machine with an expected 10-year
life are estimated to be $1,700 each year for the first 5 years
Followed by a $2,000 expenditure in year 8 and a $2,500
expenditure in the year 10. What is the equivalent present
worth cost? Assume i= 6% per year.
Select one:
O a.-10,233
O b.-11.497
Oc-9,812
O d.-8,127
O e.-6863
Solution
Follow-up Question
![If i= 14.8% per year, compounded monthly What is the
effective interest rate per semiannual? (ABET, SO1)
Select one:
O a. 15.85%
O b. 7.63%
O c 74%
O d. 1.23%
O e. 7.91%](https://content.bartleby.com/qna-images/question/8f3d476c-9981-4fed-bc44-493a866cb4e9/3e4976a2-6d06-4b2f-8639-9ea73e1e286e/ormn7wt_thumbnail.jpeg)
Transcribed Image Text:If i= 14.8% per year, compounded monthly What is the
effective interest rate per semiannual? (ABET, SO1)
Select one:
O a. 15.85%
O b. 7.63%
O c 74%
O d. 1.23%
O e. 7.91%
Solution
Follow-up Question
![If you invest $7,000 at 10% per year, compounded
continuously, how much would it be worth in five years.
Select one:
O a. 11,543
O b.8,245
Oc.13,192
O d. 10,389
O e. 9,070](https://content.bartleby.com/qna-images/question/8f3d476c-9981-4fed-bc44-493a866cb4e9/abc5a233-f96f-4751-81aa-9a931c5a323c/zpmzj_thumbnail.jpeg)
Transcribed Image Text:If you invest $7,000 at 10% per year, compounded
continuously, how much would it be worth in five years.
Select one:
O a. 11,543
O b.8,245
Oc.13,192
O d. 10,389
O e. 9,070
Solution
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education