If the sum of P12,000.00 is deposited in an account earning interest rate of 9% compounded quarterly, a.) what will it become after 1 year? b.) what is the effective rate? c.) What is then the equivalent nominal interest rate if compounded monthly?
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Dont't use excel. Just use formule to show the solution.
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- Define the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future value be larger or smaller if we compound an initial amount more often than annually—for example, every 6 months, or semiannually—holding the stated interest rate constant? Why? What is the future value of $100 after 5 years under 12% annual compounding? Semiannual compounding? Quarterly compounding? Monthly compounding? Daily compounding? What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 12%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily?Answer the following Compound Interest problem using the provided formula ONLY. Show your complete solution. 7. Compound Interest A. If the sum of P 12,000 (pesos) is deposited in an account earning interest rate of 9% compounded quarterly, what will it become after 1 year? B. In the previous problem, what is the effective rate? C. What is then the equivalent nominal interest rate if compounded monthly?Suppose that a savings account pays an effective rate of interest of 11.7 percent. What is the equivalent annual compound interest rate if interest is compounded semi-annually? Answer = %?
- What interest rate compounded bi-monthly is needed for an amount of P20,679 to increase to P30,550 in 3 years?What is the effective interest rate per payment period for an interest rate of 12% compounded monthly when the payment is quarterly ? Select one: a.0.06 b. 0.5 c. 0.12 d. 0.4 e.0.03what simple interest rate is equivalent to 1% compounded quarterly
- What is the present worth of annually payments ( 2000 $ ) if the first payment will deposit after five from now , and the last one will deposit at begin of the fifteenth year ? Assume interest rate ( 7 % ) ?P500,000 was deposited for a period of 5 yrs. And 6 months and bears on interest of P85,659.25. What is the nominal rate of interest if it is compounded quarterly? What is the actual rate of interest? What is the equivalent nominal rate if it is compounded semi-quarterly?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?
- Answer the following Compound Interest problem using the provided formula ONLY. Show your complete solution. 11. Compound Interest What rate in percent compounded monthly is equivalent to 18% compounded semi-annually? 14. When compounded bi-monthly, P150,000 becomes P223,183 after 5 years. What is the nominal rate of interest?An interest rate of 6% compounded semiannually is equivalent to what rate compounded monthly?What is the present worth of P 2,991 and P 6,337 payments at the end of the 5 and 15 years, respectively, if the annual interest rate is 0.14?