1. A bank charges 1.5% per month on a loan. Find the equivalent nominal rate of interest. 2. A financing company charges 1.5% per month on a loan. Find the equivalent effective rate of interest. 3. A nominal rate of 12% compounded monthly is equal to an effective rate of interest. 4. Convert 16% compounded semi-annually to equivalent nominal rate which is compounded daily.
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- 2.If the rate of interest is 8% compounded quarterly, find the nominal rate of interest.1.What is the accumulated amount of an annuity paying P30,000 at the end of each year for 7 years with interest at 15% compounded annually? 2.Miss Dela Cruz borrows P500,000 at 12% compounded annually agreeing to repay the loan in 15 equal annual payments. How much of the original principal is still unpaid after he has made the 8th payment.12. Compute the effective annual interest rate if the nominal rate is 12.7% compounded bi-monthly. 13. Compute for the effective quarter interest rate if nominal rate is 2.69% compounded semi-annual.
- What effective annual interest rate corresponds to the following situations? a. nominal interest rate of 10% compounded semi-annually b. nominal interest rate of 6% compounded monthly c. nominal interest rate of 8% compounded quarterly6. If $ 1,000 becomes $ 1,126.49 after 4 years invested at a certain nominal rate of interest compounded semi-annually, determine the effective rate.11. Compute the effective interest rate per semi-annual Nominal rate = 13.1% compounded yearly 12. Compute the effective annual interest rate if the nominal rate is 12.7% compounded bi-monthly. 13. Compute for the effective quarter interest rate if nominal rate is 2.69% compounded semi-annual.
- Find the interest rates in the following situations. a. APR = 7%, compounded monthly. Find the effective annual interest rate. b. Nominal rate is 10% compounded quarterly. Find the effective semi-annual rate. c. The effective annual interest rate is 16.28% and compounding is monthly. Find the nominal interest rate.4. Find the nominal rate of 22% compounded every 3 months1. Accumulate P 3,000 for 9 years at 6 percent interest compounded quarterly. How much is the compound interest earned? 2. Determine the nominal rate which if converted quarterly could be used instead of 12 percent compounded monthly. What is the corresponding effective rate?
- 8. A farmer bought a tractor costing 25,000 payable in 10 semi-annual payments, each installment payable at the beginning of each period. If the rate of interest is 26% compounded semi-annually, determine the amount of each installment.6. An individual makes six annual deposits of $2,000 in a savings account that pays interest at a rate of 4% compounded annually. Two years after making the last deposit, the interest rate changes to 7% compounded annually. Ten years after the last deposit the accumulated money is withdrawn from the account. How much is withdrawn?If you borrowed $24,000 at 12% annual interest. You agreed to repay the loan with five equal annual payments. How much of the total amount repaid is interest? How much of the third annual payment is interest, and how much principal is there? If you decided to pay off your loan after the third payment, how much will you pay?