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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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- For an interest rate of 2% per month, find (a) the effective rate per quarter, and (b) the effective rate per year.Calculate the annual force of interest which is equivalent to an effective rate of discount of 7.8% per 8 months. Answer: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 effective annual rate of interest equivalent to a nominal rate of interest of 4.8% compounded monthly.Compute for the effective interest rate per seminannual. Nominal rate = 7.43% compounded bi-monthlyFind 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.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 = %?Calculate the Effective Annual Rate (EAR) for a loan with Annual Percentage Rate (APR) of 11.4% compounded quarterly.