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The effective rate of interest is 2.3% per annum. Calculate the effective rate of discount per month.
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- Calculate the annual force of interest which is equivalent to an effective rate of discount of 7.8% per 8 months. Answer:Compute for the effective interest rate per seminannual. Nominal rate = 7.43% compounded bi-monthlyFor an interest rate of 2% per month, find (a) the effective rate per quarter, and (b) the effective rate per year.
- You are told that the nominal rate of interest is 3.7% per 4 months payable monthly. Calculate the equivalent effective annual rate of interest.Find the interest rates in the situation as: The effective annual interest rate is 11.02% and compounding is monthly. Find the nominal interest rate.You are told that the nominal rate of interest is 3.46% per quarter year payable monthly. Calculate the equivalent effective annual rate of interest.
- Find the effective annual rate of interest equivalent to a nominal rate of interest of 4.8% compounded monthly.The effective rate of interest is 12% per annum. Calculate the effective rate of interest per month.Calculate the Effective Annual Rate (EAR) for a loan with Annual Percentage Rate (APR) of 11.4% compounded quarterly.
- 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 = %?Find the effective rate of interest corresponding to a nominal rate of 7% per year compounded monthly.You are told the effective interest rate on an account is 2.1%, if the interest is compounded continuously. What is the annual percentage rate for the account? Give your answer to four decimal places. The annual percentage rate is 2.1222 %.