Problem Definition Problem 39. Effective Rate Find the effective rate of interest corresponding to a nominal rate of 9% per year compounded (a) annually, (b) semiannually, (c) quarterly, and (d) monthly.
1. Problem Definition Problem 39. Effective Rate Find the effective rate of interest corresponding to a nominal rate of 9% per year compounded (a) annually, (b) semiannually, (c) quarterly, and (d) monthly.
Step-by-step explanation:
I - 9% ÷ 100 = 0.09%
A) Annually - 1
Formula:
EAR = (1 + i ÷ n)^n - 1
Solution:
EAR = (1 + 0.09 ÷ 1)^1 - 1
Answer: 0.09
B) Semi Annually - 2
Formula:
EAR = (1 + i ÷ n)^n - 1
Solution:
EAR = (1 + 0.09 ÷ 2)^2 - 1
Answer: 0.9203
C) Quarterly - 4
Formula:
EAR = (1 + i ÷ n)^n - 1
Solution:
EAR = (1 + 0.09 ÷ 4)^4 - 1
Answer: 0.0931
D) Monthly - 12
Formula:
EAR = (1 + i ÷ n)^n - 1
Solution:
EAR = (1 + 0.09 ÷ 12)^12 - 1
Answer: 0.94
2. When is the effective interest rate equal to the nominal interest rate?
Answer:
The nominal interest is 3-52 equal by severance my rt ate by Atr its take me happy administrative
Explanation:
I hope it helps
3. If an amount is invested is P 50,000 eavns enterest of P4,500 in 6 years. What interest rate (r) is in effect?
0.54
Step-by-step explanation:
r = I/Pt
= 4,500/50,000×6
= O.54
Hope it helps, HEHE<3
4. The effective interest rate on bonds is lower than stated rate when bonds sell
Answer:
Please complete the question po thank you
5. a bank offers 20% effective anual interest rate. what is the equivalent effective monthly interest rate?
Answer:
for example the bank offers 20% so balo
6. Sample problem in identify the base rate and percentage
Example:A farmer picked 7kgs. of petchay. He sold 60% of this. How many kgs. of petchay did he sell?
Formula:
P=B times R
P=7 times 60%
P=7 times .60
P=4.20
7. give the research interests of the FF.•health care in Philippines•how does modular learning affects students•underlying problems of crime rates
Answer:
correct me if im wrong
Explanation:
hope it hepls
carry on learning
Dko po Alam Yan ano po ba gagawin
8. the effect of the interest rate charged to the principal to be paid to government
The interest rate is the amount a lender charges for the use of assets expressed as a percentage of the principal. The interest rate is typically noted on an annual basis known as the annual percentage rate (APR). The assets borrowed could include cash, consumer goods, or large assets such as a vehicle or building.
9. The effective rate is the simple interest rate that would yield the same amount of interest after 1 year. true or false
Answer:
true
because
the effective rate is simple interest after the one year
Explanation:
hope it helps to you
10. What effective rate is equivalent to a simple interest rate of 9% on a year transaction?
10% YAN PO SAGOT DIYAN OK NA PO BA
11. cash loan of loan of 8,000 that becomes 8800 after 2 years at an interest rate 5%. per year . A. SAMPLE INTEREST B. COMPOUND INTEREST
B. Compound interest.
12. What interest rate compounded monthly is equivalent to 10% effective rate?
Step-by-step explanation:
MAG Aral wag puro brainly
13. What is the effective annual interest rate of an investment that pays 7.6% annual interest, compounded quarterly?
Answer:
The effective annual interest rate is the real return on a savings account or any interest-paying investment when the effects of compounding over time are taken into account. It also reveals the real percentage rate owed in interest on a loan, a credit card, or any other debt.
Explanation:
hope it help
14. 2. Find the effective rate of interest equivalent to the following rates: a. 3% annual compound interest rate. b. 2.8% interest rate compound Quarterly c. 2.5% interest rate compound monthly d. 2% interest rate compound continuously
Answer:
A
Step-by-step explanation:
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15. A lender claims to be lending at simple interest, but he adds the interest every 6 months in the calculation of principal. The rate of interest charged by him is 8%. What will be the effective rate of interest
Step-by-step explanation:
(number of compounding periods) - 1. Effective annual interest rate = (1 + (nominal rate / number of compounding periods) This would be 10.47 percent for investment A: (1 + (10 percent / 12) 12 - 1. 10.36 percent = (1 + (10.1 percent / 2)) 2 - 1 for investment B, and 10.36 percent = (1 + (10.1 percent / 2)) 2 - 1 for investment C.
16. 1. Eudora finally finished her report about the effect of stirring to the dissolving rate of solute. She used iodized salt and water and prepared two samples for the experiment in which Sample A is stirred while Sample B is left undisturbed. What do the following statements in her report represent? i. The Effect of Stirring to the Rate of Dissolving a Solute ii. What is the effect of stirring to the rate of dissolving the iodized salt? iii. Stirring will increase the rate of dissolving iodized salt in a saline solution. iv. Stiming greatly increased the rate of dissolving of iodized salt in the water, where it took only ten (10) seconds for the salt in Sample A to dissolve, while it took 120 seconds for the salt in sample B to dissolve. a. title, problem, hypothesis and conclusion b. introduction, problem, conclusion, procedure c. title, problem, result and procedure d. problem, variables, hypothesis and results
Explanation:
hindi ko po yan alam po sorry na lng
17. What is the effect of high interest rate to the borrowers.
Answer:
Because higher interest rates mean higher borrowing costs, people will eventually start spending less. The demand for goods and services will then drop, which will cause inflation to fall.
Step-by-step explanation:
18. money that double account after 5 years o maturity. a. compound interest rate B. sample interest rate.
Answer:
money that double account after 5 years o maturity?a. compound interest rate
B. sample interest rate.
#CarryOnLearning19. give the interest rate per conversion period in the problem
Answer:
Hi,g'eve.where's the problem?
20. How does risk effect interest rate?
Answer:
Interest rate risk directly affects the values of fixed income securities. Since interest rates and bond prices are inversely related, the risk associated with a rise in interest rates causes bond prices to fall and vice versa. ... Hence, the older bonds that have higher yields tend to increase in price
Explanation:
paki brainliest
21. Explain the effect on sample size of increasing tolerable exception rate
Answer:
The tolerable exception rate and acceptable risk of overreliance are inversely related to sample size; that is, as TER or ARO increase, sample size will decrease.
22. What is the effect of high interest rate to the depositors, creditors and investors?
Answer:
Typically, higher interest rates reduce investment, because higher rates increase the cost of borrowing and require investment to have a higher rate of return to be profitable. ... Private investment is an increase in the capital stock such as buying a factory or machine.
23. Compute the time deposit effective interest rate of 3% compounded
Answer:
0.03
Step-by-step explanation:
sana makatulong po yun lng po aking masagot
24. The wealth effect, interest-rate effect, and exchange-rate effect are all explanations for
Answer:
ayan na oh thank you
Step-by-step explanation:
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25. problem finding a rate with the use of simple interest
rate is equal to Interest divided by Percentage times time
or simply r=I/Pt
26. 1. TRUE OR FALSE (10 points)Direction: Write True if the statement is correct. If it is not, write False and stateyour reason briefly1) In finance, investment refers to money invested in stocks and bonds or otherfinancial instruments.2) Investments is non-financial instruments include investments in stocks, bonds,or cash and cash equivalents.3) A bond is an unconditional promise to pay a specified sum of money in thefuture and in periodic amount of dividends.4) A term bond has a series of maturity dates.5) A callable bond is a bond that can be surrendered to the issuing company at theoption of the bondholder.6) The nominal rate of interest is usually the true rate of interest on bondinvestment7) The interest rate appearing on the face of the bonds is called the effective interestrate.8) The effective interest rate is affected only by the inflation rate.9) The business risk in the risk premium refers to the inability of the business toremain liquid10) Investors are very much interested in the yield to maturity date, but not in themarket rate of interest.
Answer:
1.T
2.F
3.T
4.T
5.F
6.T
7.T
8.F
9.F
10.T
27. sample problem about ordinary and exact interest
I don't know what this question mean, but if it asks about problems involving interests. This is an example:
1.) Mr. Sioco paid $249,750 corresponding to the principal and interest of his one year loan. What was the interest rate applied to this if the original amount he borrowed was $225,000?
(Warning; This sample problem was taken from a question from Frankgamala 18 hours ago.)
28. a certain nominal annual interest rate has an effective rate of 19.722% when compounded continuously.what is its effective rate if compounded bi monthly
Answer:
The nominal rate is the interest rate as stated, usually compounded more than once per year. The effective rate (or effective annual rate) is a rate that, compounded annually, gives the same interest as the nominal rate. If two interest rates have the same effective rate, we say they are equivalent.
29. How does interest rate affect banks
Explanation:
Interest rates and bank profitability are connected, with banks benefiting from higher interest rates. When interest rates are higher, banks make more money, by taking advantage of the difference between the interest banks pay to customers and the interest the bank can earn by investing.
Answer:
Interest rates and bank profitability are connected, with banks benefiting from higher interest rates. When interest rates are higher, banks make more money, by taking advantage of the difference between the interest banks pay to customers and the interest the bank can earn by investing.
Explanation:
30. Compute the time deposit effective interest rate of 3% compounded
Answer:
Ambot sa kambing na may bangs
