An investment pays you 9% interest, compounded quarterly. What is the periodic rate of interest? What is the nominal rate of interest? What is the effective rate of interest?

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: 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 is the future value of $875 deposited for one year earning an 8 percent interest rate annually?

A: Future value can be described as the future worth of a specific amount at a certain future date.It…

Q: Suppose that an investment promises to pay a nominal 9.6 percent annual rate of interest. What is…

A: According to the rule, we will answer the first three subparts, for the remaining subparts, kindly…

Q: Find the annual percentage yield for an investment at the following rates. (Round your answers to…

A: Annual percentage yield = [(1 + i/n)^n] - 1 where, i = nominal interest rate n = compounding period…

Q: Suppose that you make quarterly deposits into a savings account that earns 8% interest compounded…

A: Effective Annual Rate is a modified rate of return where it considers the compounding effect.…

Q: Find the annual percentage yield for an investment at the following rates. (Round your answers to…

A: A. Annual percentage yield (APY)= (1+ r/n)^nt -1 r= Rate of interest e= Exponential function nt=…

Q: You are offered an investment with a quoted annual interest rate of 10% with weekly compounding of…

A: The effective annual interest rate is the actual interest rate that we get if we take the frequency…

Q: If the nominal annual interest rate is 15%, what is the effective interest rate when interest is…

A: In this question We require to calculate the effective interest rate from below details: Nominal…

Q: What effective annual interest rate is equivalent to 9% compounded quarterly?

A: In this question we need to compute the effective annual interest rate compounded quarterly.

Q: Assume the annual interest rate is 6%. Calculate the value of an investment that pays $100 every two…

A: Present value of perpetuity is = cash flow/rate

Q: A nominal interest rate of 11.333%, continuously compounded, yields an effective annual interest…

A: Effective annual rate = e^r - 1 where, r= nominal interest rate

Q: If the stated annual rate of interest compounded semi-annually is 12.5% then what is the equivalent…

A: Interest rate (APR) = 12.5% Number of compounding per year (m) = 2

Q: What effective annual interest rate to the nominal interest rate of 6% compounded monthly?

A: Interest rate (r) = 6% Number of compounding per year (m) = 12

Q: What is the annual effective interest rate equivalent to a nominal rate of 12 percent a year? Yanıt:

A: The effective rate of interest is an important technique in the case of multi-period compounding. If…

Q: What is the effective annual interest rate of an investment that pays 7.6% annual interest,…

A: The effective annual interest rate is defined as the real return on any interest paying investment…

Q: How long will it take money to triple itself if invested at 8.35% compounded quarterly? What is the…

A: The number of years it will take for the money to triple can be computed with the help of NPER…

Q: With an interest rate of 15 % how long does it take for an invest- ment to quadruple, if the…

A: Future Value formula with periodic compounding i.e. annual, monthly, semi-annual or quarterly…

Q: What is the effective interest rate per month if the interest rate is 9% compounded continuosly?

A: The effective interest rate is the actual return on a savings account or any other interest bearing…

Q: The annual interest rate is 12%. Find (a) the semi-annual rate, (b) the quarterly rate, (c) the…

A: semi-annual rate is the rate that is compounded twice a year (i,e) for every six months is called…

Q: The interest rate for an investment is 7% pa compounded monthly. Find the effective interest rate…

A: The effective annual rate (EAR) is the actual rate of return earned after taking the compounding…

Q: What is the corresponding effective interest rate of 18% compounded semi-annually?

A: The effective interest rate is the real return earned on an interest-paying investment or savings…

Q: Find the nominal interest rate compounded quarterly which could be used instea compounded monthly.…

A: In this we have to find effective interest rate in both cases and find equivalent rate.

Q: What is the rate of interest per interest period if the nominal rate of interest is 25% compounded…

A: nominal rate of interest = 25% Compounded monthly No. of period = 12

Q: What effective interest rate per year is equivalent to 19% per year compounded quarterly?

A: Formula for effective rate of interest                                                = (1+i/n)n-1…

Q: What is the equivalent simple interest (yield) for an investment of 8 % compounded quarterly? Round…

A: Effective Annual Rate The effective annual rate of interest is the actual or the real rate of…

Q: What is the present value of an investment in which the interest rate is 3.9% per year, compounded…

A: The time value of money is the idea that the value of money received today will be more worthy than…

Q: You are comparing two investments. The first pays 3 percent interest per month, compounded monthly,…

A: a) i) First investment: Rate of interest i =3% per month Number of compounding periods in one half…

Q: What is the present value of an investment at 6% annual simple interest if it is worth $832 in 8…

A: Future value (S) = $832 Time (t) =  8 months (8/12) Rate (r) = 6% (0.06) Simple interest (I) = Prt

Q: What is the effective interest rate per quarter if the interest rate is 10% compounded monthly?

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

Q: What is the future value of an investment that pays P2,500 at the beginning of each period with an…

A: In this we have to find out the future values of payments.

Q: What is the effective annual interest rate of an investment that pays 6.5% annual interest,…

A: EAR is the actual rate of return investment or loan generates after taking compounding into account.…

Q: What nominal interest rate is implied if you borrow 12,500 and repay 21,364.24 in three years with…

A: Using excel RATE function

Q: If the interest bearing account yielded an effective interest rate of 9% what would nominal rate,…

A: The question is based on the concept calculation of effective interest rate (EIR) of quarterly…

Q: If the annual interest rate is 19%, what is the quarterly interest rate? 4+ decimals

A: Data given Annual Interest Rate (i)= 19%  Simple Interest Rate -To convert annual interest rate into…

Q: Suppose that an investment promises to pay a real 9% annual rate of interest and inflation rate is…

A: The effective annual rate of interest is the real return on the savings account when the effects of…

Q: What is the effective annual rate on an investment that pays an interest rate of 8.25% continuously

A: in this we have to calculate the exponential form and find out effective interest rate.

Q: You are offered an investment with a quoted annual interest rate of 6% with quarterly compounding of…

A: Interest rate (r) = 6% Number of compounding per year (m) = 4Tutor Dashboard - Course Hero

Q: What is the effective annual interest rate on this investment assuming that interest is compounded…

A: Effective Annual Interest Rate = (1 + (Nominal Interest rate / Number of compounding…

Q: If the effective annual interest rate is 4%, compute the annual effective interest compounded…

A: If interest is compounded continuously, we should calculate the effective interest rate using the…

Q: If the interest rate is 12% compounded quarterly, what is the interest rate per conversion period?

A: The conversion period for the interest rate is the period in which the interest rate gets…

Q: What is the future value of an investment that pays P2,500 at the end of each period with an…

A: future value of an investment that pays P2,500 at the end of each period with an interest rate of…

Q: suppose that an investment promises to pay a real 9% annual rate of interest and inflation rate is…

A: Given, Real Rate of Interest 9% Inflation 3%

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.