Find the EAR for the stated rate (APR) of 12.4 percent compounded quarterly. (Enter your answer as a percentage, omit the "%" sign in your response, and round your answer to 2 decimal places. For example, 0.12345 or 12.345% should be entered as 12.35.)
Effective annual rate is the rate of interest an investor earns in a year after accounting for the effects of compounding.
It is calculated using the below formula:
EAR= (1+i/n)^n-1
Where i is the interest rate and n is the number of compounding periods in one year.
EAR= (1+0.124/4)^4-1
= 1.1299-1
= 0.1299*100= 12.99%
Therefore, the effective annual rate is 12.99%.
Find the EAR for the stated rate (APR) of 12.4 percent compounded quarterly. (Enter your answer...
Find the EAR for the stated rate (APR) of 16 percent compounded monthly. (Enter your answer as a percentage, omit the "%" sign in your response, and round your answer to 2 decimal places. For example, 0.12345 or 12.345% should be entered as 12.35.)
Find the APR, or stated rate, for an effective rate (EAR) of 19.7 percent compounded semiannually. (Enter your answer as a percentage, omit the "%" sign in your response, and round your answer to 2 decimal places. For example, 0.12345 or 12.345% should be entered as 12.35.)
You want to buy a new sports coupe for $88940, and the finance office at the dealership has quoted you a 6.4 percent APR loan for 68 months to buy the car. What is the effective annual rate on this loan? (Enter your answer as a percentage, omit the "%" sign in your response, and round your answer to 2 decimal places. For example, 0.12345 or 12.345% should be entered as 12.35.)
Suppose you bought a bond with an annual coupon of 8 percent one year ago for $968. The bond sells for $947 today. Assuming a $1000 face value, what was your total nominal rate of return on this investment over the past year? (Negative amount should be indicated by a minus sign. Enter your answer as a percentage, omit the "%" sign in your response, and round your answer to 2 decimal places. For example, 0.12345 or 12.345% should be...
You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 6 percent, -15 percent, 22 percent, 35 percent, and 20 percent. Suppose the average inflation rate over this period was 3.4 percent and the average T-bill rate over the period was 4.2 percent. What was the average nominal risk premium on Crash-n-Burn's stock? (Enter your answer as a percentage, omit the "%" sign in your response, and round your answer to 2 decimal places. For example,...
A portfolio has 120 shares of Stock A that sell for $33 per share and 95 shares of Stock B that sell for $20 per share? What is the portfolio weight for Stock B? (Enter your answer as a percentage, omit the "%" sign in your response, and round your answer to 2 decimal places. For example, 0.12345 or 12.345% should be entered as 12.35.)
The effective annual rate (EAR) for a loan with a stated APR of 6% compounded quarterly is closest to: A. 6.14% B. 7.36% C. 7.98% D. 6.75%
Find the EAR in each of the following cases Stated Rate (APR) Number of Times Compounded Effective Rate (EAR) 11.50 % Quarterly % 14.50 % Monthly % 17.50 % Daily % 13.50 % Semiannually %
Find the APR, or stated rate, in each of the following cases (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g. 32.16.): Stated Rate (APR)Number of Times CompoundedEffective Rate (EAR)%Semiannually 11.4%Monthly12.3Weekly10.0Infinite13.7
Find the effective annual interest rate (EAR) for each of the following: 4.00 percent compounded quarterly. (Round answer to 2 decimal places, e.g. 15.25%.) Effective annual rate % 4.80 percent compounded monthly. (Round answer to 2 decimal places, e.g. 15.25%.) Effective annual rate% 6.50 percent compounded semiannually. (Round answer to 2 decimal places, e.g. 15.25%.) Effective Annual Rate % 4.50 percent compounded daily. (Round answer to 2 decimal places, e.g. 15.25%. Use 365 days for calculation.) Effective Annual Rate %