2) the math of interest. please indicate if you are unsure or totally sure about the answer Given an effective annual rate j₁a. 4.82719%O b. 5.95950%C. 5.84031%d. 4.46962%e. 5.89990%6.12500%, find the equivalent nominal rate (12)Certainty OC=1 (Unsure: <67%) OC=2 (Mid: >67%) OC=3 (Quite sure: >80%)

Effective annual rate is the rate where the interest is determined after considering the compounding…

Given an effective annual rate j₁ = 6.12500%, find the equivalent nominal rate ¡(12). O a. 4.82719% O b. 5.95950% O c. O d. 4.46962% O e. 5.89990% 5.84031% Certainty OC=1 (Unsure: <67%) OC=2 (Mid: >67%) OC=3 (Quite sure: >80%)

Given an effective annual rate j₁ = 6.12500%, find the equivalent nominal rate ¡(12). O a. 4.82719% O b. 5.95950% O c. O d. 4.46962% O e. 5.89990% 5.84031% Certainty OC=1 (Unsure: <67%) OC=2 (Mid: >67%) OC=3 (Quite sure: >80%)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Concept explainers

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.

Question

2) the math of interest. please indicate if you are unsure or totally sure about the answer

Given an effective annual rate j₁
a. 4.82719%
O b. 5.95950%
C. 5.84031%
d. 4.46962%
e. 5.89990%
6.12500%, find the equivalent nominal rate (12)
Certainty OC=1 (Unsure: <67%) OC=2 (Mid: >67%) OC=3 (Quite sure: >80%)

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