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What is the effective annual rate if the stated rate is 8 percent and compounding occurs semiannually?
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∙ 8y ago
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∙ 8y ago
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What is the effective rate of 18600 invested for one year at 7 and one half percent compounded semiannually?
The annual equivalent rate is 15.5625%. The amount invested is irrelevant to calculation of the equivalent rate.
What was the total savings for 400 annual rate 6 percent 6 percent compounded semiannually?
The total grows as time passes. That's the whole idea of interest and compounding. In order to calculate what the total is now, we need to know how long it has been in the account accumulating interest, and you haven't told us that.
What is the future value of 100 after 5 years under 12 percent if compounded annually semiannually quarterly monthly daily?
Annual: 176.23 Semiannually : 179.08 Quarterly: 180.61 Monthly: 181.67 Daily: 182.19 (assuming 365.25 days per year, on average).
What is the future value of 10000 for an interest rate of 16 percent and 1 annual period of compounding?
With only one year the value is 11600
What is the future value of 1200 a year for 40 years at 8 percent interest?
What is the future value of $1,200 a year for 40 years at 8 percent interest? Assume annual compounding.
Is The effective annual rate increases with increasing compounding frequency?
Yes
What is the effective rate of 18600 invested for one year at 7 and one half percent compounded semiannually?
The annual equivalent rate is 15.5625%. The amount invested is irrelevant to calculation of the equivalent rate.
What was the total savings for 400 annual rate 6 percent 6 percent compounded semiannually?
The total grows as time passes. That's the whole idea of interest and compounding. In order to calculate what the total is now, we need to know how long it has been in the account accumulating interest, and you haven't told us that.
The future value of a 1000 investment today at 8 percent annual interest compounded semiannually for 5 years is?
$1480.24
What is the difference between effective interest method and constant yield method?
An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: Consider a stated annual rate of 10%. Compounded yearly, this rate will turn $1000 into $1100. However, if compounding occurs monthly, $1000 would grow to $1104.70 by the end of the year, rendering an effective annual interest rate of 10.47%. Basically the effective annual rate is the annual rate of interest that accounts for the effect of compounding.
Does annual compounding pay more money than daily compounding?
It all depends with the amount of the annual or daily compounding. In most cases it is however the daily compounding that pays more than the annual compounding.
Does annual compound pay more money than daily compound?
It all depends with the amount of the annual or daily compounding. In most cases it is however the daily compounding that pays more than the annual compounding.
What is the effective annual rate of 14.9 percent compounded continuously?
It is 14.9 percent.
What is the effective borrowing rate?
The new interest rate due to the impact of the total fees is 13.233 % which translates into an effective interest rate of 13.6708 % due to semi-annual compounding.
What is the future value of 100 after 5 years under 12 percent if compounded annually semiannually quarterly monthly daily?
Annual: 176.23 Semiannually : 179.08 Quarterly: 180.61 Monthly: 181.67 Daily: 182.19 (assuming 365.25 days per year, on average).
What does effective interest rate mean?
An effective annual interest rate considers compounding. When the principle is compounded multiple times each year the interest rate increased to be more than the stated interest rate. The increased interest rate is the effective annual interest rate.
What is the effective annual rate of 8 percent interest that is compounded monthly?
0.67 percent
