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(1 point) What are the effective annual rates for an account paying an annual interest rate...
HW18: Problem 9 Previous Problem Problem List Next Problem (4 points) What are the effective annual rates for an account paying an annual interest rate of 10% which is compounded: (a) annually? (b) quarterly? (c) daily (assuming there are 365 days in the year)? (d) continuously? E % Note: You can earn partial credit on this problem. Preview My Answers Submit Answers You have attempted this problem 0 times. You have unlimited attempts remaining. Page generated at 11/21/2019 at 06:19pm...
2.30 For a 15 percent effective annual interest rate, what is the nominal interest rate if (a) Interest is compounded monthly? (b) Interest is compounded daily (assume 365 days per year)? (c) Interest is compounded continuously?
a. For an interest rate of 100% per year compounded continuously, calculate the effective daily, weekly, monthly, quarterly, semiannually, and annually interest rates. b. An investor requires an effective return of at least 12% per year. What is the minimum annual nominal rate that is acceptable for continuous compounding?
4. Find the effective bimonthly interest rate equivalent to: (a) nominal annual interest of 9%, compounded 6 times per year; (b) nominal annual discount of 6%, compounded quarterly; (c) 1/2 nominal annual interest of 8%, compounded continuously.
Which would Seth rather have at the end of one year: An account paying an annual effective rate of 10% or an account with a 9.60% APR compounded monthly? An account paying an annual effective rate of 10% or an account with a 9.60% APR compounded quarterly? An account paying an annual effective rate of 10% or an account with a 10% APR compounded annually?
(11) An account with an annual interest rate of 3% is opened and some amount of money is deposited today. Assuming no Further transactions (withdrawals or deposits) on the account, how much should the initial deposit be so that the account has $500 16 months from now if interest is compounded (a) annually? (2 points) (b) monthly? (2 points) (c) quarterly? (4 points) (d) continuously? (2 points) Also, provide the ANNUAL yield in all parts. (11) An account with an...
Assume that you deposit $10,000 today into an account paying 6% annual interest and leave it on deposit for exactly 8 years. a. How much will be in the account at the end of 8 years in interest is compounded: 1. annually? 2. semiannually? 3. monthly? 4. continuously? b. Calculate the effective annual rate (EAR) for a (1) through a (4) above. c. Based on your findings in parts a and b, what is the general...
What is the effective annual rate (EAR) of a 9 percent annual stated rate that is compounded daily. (assume 365 days per year)? O9.2025% O 9.4162% 09.3083% 9.3807% O None of these are correct.
4. Find the effective interest rate corresponding to the following stated rates: (a) 5% per year, compounded quarterly. (b) 5% per year, compounded daily. 4. Find the effective interest rate corresponding to the following stated rates: (a) 5% per year, compounded quarterly. (b) 5% per year, compounded daily.
Assume that nominal effective interest i(12) = .03. Find ? a) Annual effective interest rate i ? b) Monthly effective interest rate j ? c) Nominal interest rate i(52) compounded weekly. ? d) Nominal discount rate d(365) compounded daily.