For nominal annual rate r= 20% per year, the effective continuous rate per year is equal...

Question

Question

For nominal annual rate r= 20% per year, the effective continuous rate per year is equal to:

a. 19.722%

b. 21.000%

c. 22.140%

d. 20.000%

business economics

Answer 1

Answer #1

Answer 2

Similar Homework Help Questions

For nominal interest rate of compounding is continuous. Show your solution 3. %, effective annual interest...

For nominal interest rate of compounding is continuous. Show your solution 3. %, effective annual interest rate will be 12% when 4. Under what conditions APR will be different from EAR? L. Shark is designing a new account that pays interest quarterly. They wish to pay effectively, a 16% per year on this account. L. Shark desires to advertise the annual percentage rate on this new account (and not the effective rate, since their competitors state their interest on an...
For nominal interest rate of compounding is continuous. Show your solution 3. %, effective annual interest...

For nominal interest rate of compounding is continuous. Show your solution 3. %, effective annual interest rate will be 12% when 4. Under what conditions APR will be different from EAR? L. Shark is designing a new account that pays interest quarterly. They wish to pay effectively, a 16% per year on this account. L. Shark desires to advertise the annual percentage rate on this new account (and not the effective rate, since their competitors state their interest on an...
What nominal rate per week is equivalent to an effective rate of 11% per year

What nominal rate per week is equivalent to an effective rate of 11% per year, compounded continuously? The nominal rate per week that is equivalent to an effective rate of 11% per year, compounded continuously is _______.

a. For an interest rate of 100% per year compounded continuously, calculate the effective daily, weekly,...

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?
Assume that nominal effective interest i(12) = .03. Find ? a) Annual effective interest rate i...

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.
4. Find the effective bimonthly interest rate equivalent to: (a) nominal annual interest of 9%, compounded...

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.

2.30 For a 15 percent effective annual interest rate, what is the nominal interest rate if...

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. If you are told that your effective annual interest rate is 10%, what is the nominal...

a. If you are told that your effective annual interest rate is 10%, what is the nominal interest rate compounded quarterly? b. What is the effective annual interest rate if the nominal interest rate is 7%, and the frequency of compounding is once a month? c. How much time would it take for your principal to quadruple if the effective annual interest rate is 5%, and the frequency of compounding is once a year?
Question 10 10 pts What is the effective annual interest rate if the nominal annual rate...

Question 10 10 pts What is the effective annual interest rate if the nominal annual rate is 27% per year compounded monthly? 2.3% 270% o 32.3% 30,6%

If the nominal annual interest rate is 24% compounded continuously, then the effective interest rate per...

If the nominal annual interest rate is 24% compounded continuously, then the effective interest rate per six-months is OA. (20.24 - 1) OB. (20.24 - 1) O C. 6x (20.02 - 1) OD. €0.04 - 1 O E. 20.12 - 1