1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Anna35 [415]
3 years ago
12

The number of compounding periods in one year is called compounding frequency. The compounding frequency affects both the presen

t and future values of cash flows. An investor can invest money with a particular bank and earn a stated interest rate of 6.60%; however, interest will be compounded quarterly. What are the nominal, periodic, and effective interest rates for this investment opportunity?
Business
1 answer:
ololo11 [35]3 years ago
5 0

Answer:

Nominal: 6,60%

Periodic:  1,65%  quaterly

Effective interes rate = 6,77%

Explanation:

The interest rate that give at the begining of the excersie is nominal 6.60% , now you have to calculate the others interest rates according with the inofmration of the coumponded period quaterly

Periodic interest rate = (6,60%/4) = 1,65%  quaterly

Effective interes rate = ((1+quaterly periodic interest rate) ^(4)) -1

Effective interes rate = ((1+1,65%) ^(4))-1

Effective interes rate = 6,77%

You might be interested in
Real property subject to a lien is referred to as:
antoniya [11.8K]
The owner of the  property, who allow  the lien, is relate to as  the Lienee and the person who has the advantage of the lien is referred to  as the  Lienor or Lien holder.
In the United States, the term lien usually pertain to a wide range of encumbrances and would involve other forms of mortgage or charge.
7 0
3 years ago
There are a number goods that over time, for a variety of reasons, transition from being a normal good to an inferior good or fr
boyakko [2]

Answer:

d. the camry becomes an inferior good because the good is now perceived as lower in quality than a lexus

Explanation:

There are a number goods that over time, for a variety of reasons, transition from being a normal good to an inferior good or from being an inferior good to a normal good. One such example of a good is the Toyota Camry. In the 1980s, more income for a household usually resulted in more Camrys being purchased. However, today more Toyota Camrys are purchased by households that have experienced a reduction in income.

How could this happen?

<u>This could only have happened because of a change in perception in households over time. </u>

It is stated in the Scenario that ''today more Toyota Camrys are purchased by households that have experienced a reduction in income.''

<u>That means Toyota Camry has become an inferior good that is purchased more when income falls.</u>

<u>Hence, the only reason the scenario would have occurred is that the camry becomes an inferior good because the good is now perceived as lower in quality</u> than a lexus

7 0
2 years ago
What is a mortgage?
ddd [48]
A mortgage is a type of loan used to buy property, the bank gives you the money at an interest rate, but takes possession of your properties until you pay back the loan. The answer would be B!

Have a nice day! :)
3 0
3 years ago
The lower-of-cost-or-market method cannot be applied to
xxMikexx [17]
Any inventory not yet received
4 0
2 years ago
Describe your values, interests, personality traits and skills
irakobra [83]
Well you would describe what you find important as an example good hygiene, interests are self explanatory, personality traits is a trait about you example leader or hard worker, and skill are what you are good at example fast typing or leadership.
3 0
3 years ago
Read 2 more answers
Other questions:
  • Full-Sole Shoes concludes a counterpurchase agreement with Japan for which it receives some counterpurchase credits. Full-Sole S
    8·1 answer
  • Personnel at a decision point in their careers can receive an overview of their veteran's benefits from what source?
    9·1 answer
  • On February 2, 2019, Alexandra purchases a personal computer. The computer cost $1,800. Alexandra uses the computer 85 percent o
    10·1 answer
  • What would be the value of the bond described in Part d if, just after it had been issued, the expected inflation rate rose by 3
    7·1 answer
  • What is a traditional economy
    5·2 answers
  • Assume a firm increases its revenue by $100 while increasing its cost of goods sold by $85. How much additional tax will the fir
    12·2 answers
  • TUMI brand briefcases are very expensive, high-end briefcases that are generally sold in specialty luggage shops. Which of the f
    10·1 answer
  • Recognizing deferred tax assets and liabilities is referred to as ______ tax allocation. Multiple choice question. intraperiod d
    15·1 answer
  • Do you agree with the decision from below mention case?
    15·1 answer
  • More businesses and organizations, such as Amazon, Uber, MTA, an airline industry, professional sport organizations such as MLB
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!