Question: Find the nominal annual rate compounded semi-annually that is equivalent to an annual rate of 6% compounded quarterly.

Find the nominal annual rate compounded semi-annually that is equivalent to an annual rate of 6% compounded quarterly.

Step by Step Solution

★★★★★

3.47 Rating (154 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

It will be equivalent if they both yield the same effective annua... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Find the nominal annual rate of interest compounded quarterly that is equal to an effective rate of 9.25%.

Q:

Find the equivalent interest rates to the given nominal interest rates. a. Nominal interest rate compounded quarterly that is equivalent to an effective interest rate of 5.5% 0.00 % Round to two...

Q:

1. What is the semi-annually compounded interest rate if $200 accumulates to $318.77 in eight years? Answer in percentage with two decimal places. 2. What is the quarterly compounded interest rate if...

Q:

For an effective annual rate ia of 15.87% compounded quarterly, determine (a) The effective quarterly rate and (b) The nominal annual rate. (c) What is the spreadsheet function to find the nominal...

Q:

Find the nominal annual rate of interest (a) At which $2500 will grow to $4000 in eight years compounded quarterly; (b) At which money will double in five years if compounded semi-annually; (c) If...

Q:

Find the nominal annual rate of interest compounded quarterly that is equal to an effective rate of 9.25%.

Q:

Find the nominal annual rate of interest (a) At which $1500 will grow to $1800 in four years compounded monthly; (b) At which money will double in seven years if compounded quarterly; (c) If the...

Q:

Find the nominal annual rate of interest (a) At which $2500 will grow to $4000 in eight years compounded quarterly; (b) At which money will double in five years if compounded semi-annually; (c) If...

Q:

Consider a mortgage loan of $300,000, repayable over 25 years, with 300 equal monthly payments (beginning at the end of the next month). If the nominal interest rate is 6% (compounded semi-annually),...

Q:

Question 1(5 points) Saved Which one of the following terms is used to identify a British perpetuity?Could also say was, since they have not existed for about 150 years. Question 1 options: ordinary...

Q:

On January 1, the Robinson Sales Company entered into a lease agreement to lease a piece of machinery for a period of five years from Smokey Boy Equipment (SBE). The machine is specialized for...

Q:

How is the primary key critical in preserving the audit trail?

Q:

12 Which calculation, A, B, C or D, gives a different answer to the other three? Show your working. B 960.01 C 9.60.1 D 96=0.01 A 0.096=0.1

Q:

Rey Custom Electronics (RCE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes it provides bids using time-and-material pricing. The...

Q:

Eckert Company is involved in producing and selling high-end golf equipment. The company has recently been involved in developing various types of laser guns to measure yardages on the golf course....

Q:

Cool Sound Corporation manufactures a line of amplifiers that carry a three-year warranty against defects. Based on experience, the estimated warranty costs related to dollar sales are as follows:...

Q:

Winstead filed his * * * com-plaint in the United States District Court for the District of New Jersey, claiming that Jacksons album/ CD and film derived their contents from, and infringed the...

Q:

What benefits do you think the United States receives from the NAFTA? What problems do you think the United States experiences as a result of NAFTA? How do you think the United States can benefit...

Q:

The team leader recognize the importance of unfreezing to the change process when he/she says unfreezing: Question 10Select one or more: a. Promotes group conformity b. Overcome individual resistance...

Q:

its all one big question. Find the equivalent interest rates to the given nominal interest rates. a. Nominal interest rate compounded quarterly that is equivalent to an effective interest rate of...

Q:

Leo has a car loan with 4 years left. The outstanding balance on the loan is $11250 and his monthly payments (at the end of each month) are $289.67. a) What is the nominal annual rate compounded...

Q:

QUESTION ONE Michopo Ma Chips is considering two different savings plans. The first plan would have her deposit K5,000 every six months, and she would receive interest at 7 percent annual rate,...

Q:

Consider the interest rate 8% compounded quarterly. (a) Find an equivalent interest rate compounded semi-annually. [ /2 ] (b) Assume that a principal of $1000 was invested for a year. Show that over...

Q:

mathematics 2. please do 3 and 4 question 2. Find the accumulated value after 12 years of deposits of $360 made at the beginning of every 3 months and earning interest of 7.5% compounded quarterly 3....

Q:

If i=.06 what is the equivalent nominal annual rate of interest compounded moth hy? pominal annual rate of discount compounded monthly? 7. the 8. If .02 is the effective rate of interest (2nd part:...