Which of the following gives the smallest annual interest if 1 year is 365 days?     10.20% APR compounded annually   9.30% APR compounded daily   9.35% APR compounded monthly   9.50% APR compounded quarterly

Q: Compute the effective annual rates for the following:a. 2 percent compounded yearly.b. 2 percent…

A: Effective annual interest rate ( EAIR ) = [{1 + ( r ÷ n )} ^ n] - 1, r= interest rate n= period  a.…

Q: What is the nominal annual rate of interest compounded monthly at which ​$1663.00 will accumulate to…

A: Number of monthly periods = Number of years×12 =3.25×12=39 Monthly interest rate is calculated using…

Q: For the following annuity due, determine the nominal annual rate of interest. Future Value Present…

A: We need to use RATE function in Excel to calculate interest on annuity. The equation is:…

Q: Reference the attached question you have answered.  What was the reason for dividing the 8% annual…

A: Annuity refers to series of equalized payments that are made at start or end of definite period. It…

Q: Use the appropriate formula to find the amortization payment you would need to make each 3 months at…

A: Amortization payment refers to that payment which is required to be paid to payoff the loan during…

Q: What is the accumulated value of periodic deposits of $60 at the beginning of every month for 17…

A: Monthly deposit (P) = $60 Period = 17 Years Number of monthly deposits (n) = 17*12= 204 Interest…

Q: Solve by using compound table: (Round your answers to the nearest cent.) # of Periods to be…

A: Compound Interest: Compound interest is the premium one procures on interest. In contributing,…

Q: Suppose that a company borrows 20,000 for 1 year at a stated rate of interest of 9 percent. What is…

A: Annual percentage rate (APR) if interest is paid to the lender annually = (1 + Stated rate / Number…

Q: etermine the simple interest.​ (The rate is an annual rate unless otherwise stated. Assume 360 days…

A: The question is based on the concept of Financial Management.Basically, there are two types of…

Q: What it the amount in an account after 3 years if $200 is deposited each quarter into the account,…

A: Compound = Quarterly Time = t = 3 * 4 = 12 quarter Payment = p = $200 Interest rate = r = 7 / 4 =…

Q: Determine the future value of $10,000 under each of the following sets of assumptions: Interest…

A: Future value: It is the value of money or asset for a specific period at a future date based on rate…

Q: At what nominal rate of interest compounded semi- annually will $11,800 earn $6 800 interest in six…

A: The objective of this question is to find the nominal rate of interest compounded semi-annually that…

Q: What is the accumulated value after 14 years of monthly deposits of $415.00 earning interest at 5.8…

A: Accumulated value, often referred to as the future value, represents the total worth of an…

Q: Find the accumulated amount A if the principal P is invested at the interest rate of r/year for t…

A: Principal amount (P) = $43,000 Interest rate (r) = 9 3/4% = 9.75% Period (t) = 9 Years Compounding…

Q: What is the effective annual rate (EAR) for an annual percentage rate (APR) or a nominal annual rate…

A: EAR = [(1+Nominal interest rate/n)^n]-1 where, n = compounding period In case of semi-annual…

Q: What is the annual interest rate (APR) required for $22,500 to accumulate to $50,000 in 14 years…

A: Future value =Present value (1+r)n 14 years =28 semiannual period

Q: If ​$956.00 accumulates to ​$1250.87 in three years, three months compounded monthly, what is the…

A: The real interest that an investor earns on the investment and a borrower pays on loan after…

Q: much do ten P 6,945 quarterly payments amount nterest rate is 3 compounded quarterly if payments y…

A: In this we have to find present value FACTOR and than we can find present value.

Q: What is the future value on December 31, Year 5, of a deposit of $10,000 made on January 1, Year 2,…

A: The future value (FV) is a financial concept that represents the value of a sum of money at a…

Q: What is the equivalent rate of 6% compounded quarterly to compounded bi-monthly? Group of answer…

A: Since you have asked multiple questions , we will answer the first one for you as per policy. Please…

Q: Calculate the accumulated value of quarterly payments of $100.00 made at the end of each quarter for…

A: The future value of an ordinary annuity is a financial concept that calculates the total value of a…

Q: Compute for the Effective Interest Rate Payment Period = Semi-annual   10% Compounded Yearly =…

A: The modified rate of return for compounding interest into actual terms of time is called the…

Q: Effective annual interest rate: Find the effective annual interest rate (EAR) on each of the…

A: Effective annual interest rate (EAR) refers to the real rate of return that we earn on our savings…

Q: etermine if the interest rates below are nominal or effective (or effective annual). 5% per year…

A: A nominal interest rate, also known as the stated or annual percentage rate (APR), is the interest…

Q: What is the effective interest rate corresponding to a nominal annual rate of. (Round your…

A: Whenever the impacts of compounding over time are considered, the effective annual interest rate is…

Q: What is the accumulated value of periodic deposits of $40 at the beginning of every month for 17…

A: This is the case of an annuity due. An annuity due is that annuity where the cash flows occur at the…

Q: Suppose that $17,000$⁢17,000 is deposited for six years at 4%4% APR. Calculate the interest earned…

A: Compound = monthly = 12 Present value = pv = $17,000 Time = t = 6 * 12 = 72 months Interest Rate = r…

Q: Which one of the following represents the highest effective interest rate per yea

A: Here we will have to convert each option to its EAR i.e. effective annual rate. The compounding…

Q: payments are deferred for 10 years? $129.43 $319.42 $305.21 $300.21

A: Monthly payment that can be withdrawn depends on interest rate and period of withdrawal and deferral…

Q: What is the nominal annual rate compounded daily equivalent to an effective rate of 4.55% ? Round…

A: Effective rate = 4.55% (Compounded daily)Compounding frequency = 365

Q: Use the compound interest formula to compute the balance in the following account after the stated…

A: We need to use compound interest formula to calculate balance in the account after 14 years A…

Q: What is the nominal annual rate of interest compounded monthly if a 9-year loan of $57,300 is repaid…

A: Here,LoanAmount is $57,200Time Period of Loan is 9 yearsMonthly Payment of Loan is $781.91

Q: Which one of the following represents the highest effective interest rate per year? Select one:…

A: Daily compounded interest means that interest is accumulated on a daily basis and is calculated by…

Q: What amount will be accumulated by Php 1,520 in 10 semi annuals at 6% compounded bi-monthly? What…

A: Since you have asked multiple questions, we will solve the first question for you as per policy.…

Q: From an account originally containing $1800, $96 is withdrawn at the end of each month if interest…

A: The Time Value of Money (TVM) is a fundamental financial concept that states that money available…

Q: Which one of the following has the highest effective annual rate? A. 6 percent compounded monthly.…

A: effective annual rate =  - 1wherer = given interest raten = frequency of compounding

Q: Determine the number of times interest is compounded in 1 year for the following interest…

A: Compound Interest is calculated by multiplying the initial principal amount by one plus the annual…

Q: Find the per period rate and the APR (the stated interest rate) for each case:

A: Per period rate refers to the periodic interest rate for the number of compounding a deposit…

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.