Consider the following: 16.8% p.a. compounded annually. 16.4% p.a. compounded monthly. 16.5% p.a. compounded quarterly. ...
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Consider the following: 16.8% p.a. compounded annually. 16.4% p.a. compounded monthly. 16.5% p.a. compounded quarterly. • NOTE: Give your answer correct to three decimal places. a) Determine the effective annual interest rate of each of the nominal rates listed above. . For 16.8% p.a. compounded annually. P= ¿(p) The effective interest rate is % . For 16.4% p.a, compounded monthly.. p= D The effective interest rate is 16.5% p.a. compounded quarterly. P= 1% ż(p) The effective interest rate is 1% b) Which is the best interest rate for an investment? % Consider the following: 16.8% p.a. compounded annually. 16.4% p.a. compounded monthly. 16.5% p.a. compounded quarterly. • NOTE: Give your answer correct to three decimal places. a) Determine the effective annual interest rate of each of the nominal rates listed above. . For 16.8% p.a. compounded annually. P= ¿(p) The effective interest rate is % . For 16.4% p.a, compounded monthly.. p= D The effective interest rate is 16.5% p.a. compounded quarterly. P= 1% ż(p) The effective interest rate is 1% b) Which is the best interest rate for an investment? %
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SOLUTION EFFECTIVE ANNUAL RATE Case1 compound annually 168 P 168 CASE2 C... View the full answer
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