Question

3 POILS

Answer 1

Answer:

The periodic interest rate from June 3  to July 2 will be 2.08%

Step-by-step explanation:

Given:

Annual percentage rate  = 25%

Time period  = June 3  to July 2

To Find:

Periodic interest rate  =?

Solution:

The periodic interest rate r is calculated using the following formula:

$r = (1 + \frac{i}{m})^{\frac{m}{n}} - 1$

Where,

i = nominal annual rate

n = number of payments per year i.e., 12 for monthly payment, 1 for yearly payment and so on.

m = number of compounding periods per year

The period interest rate per payment is integral to the calculation of annuity instruments including loans and investments.

Now substituting the values we get

$r = (1 + \frac{25}{12})^{\frac{12}{12}} - 1$

$r = (1 + \frac{25}{12})^1 - 1$

$r = (1 +2.083 ) - 1$

$r = (3.083 ) - 1$

$r = 2.083 \%$

Answer 2

Answer:

2.05%

Step-by-step explanation:

APEX