nominal

Publish date: 2024-04-21
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A credit plan charges interest rate of 36% compounded monthly. Find the effective rate.

A credit plan charges interest rate of 36% compounded monthly. Find the effective rate. [U]Calculate Monthly Nominal Rate:[/U] Monthly Nominal Rate = Annual Rate / 12 months per year Monthly Nominal Rate = 36%/12 Monthly Nominal Rate = 3% [U]Since there are 12 months in a year, we compound 12 times to get the effective rate below:[/U] Effective Rate = (1 + Monthly Nominal Rate as a Decimal)^12 - 1 Since 3% = 0.03, we have: Effective Rate = 100% * ((1 + 0.03)^12 - 1) Effective Rate = 100% * ((1.03)^12 - 1) Effective Rate = 100% * (1.42576088685 - 1) Effective Rate = 100% * (0.42576088685) Effective Rate = [B]42.58%[/B]

A person invests $500 in an account that earns a nominal yearly rate of 4%. How much will this inves

A person invests $500 in an account that earns a nominal yearly rate of 4%. How much will this investment be worth in 10 years? If the interest was applied four times per year (known as quarterly compounding), calculate how much the investment would be worth after 10 years. Using our [URL='https://www.mathcelebrity.com/compoundint.php?bal=500&nval=10&int=4&pl=Annually']compound interest calculator[/URL], $500 @ 4% for 10 years is: $[B]740.12 [/B] Using [URL='https://www.mathcelebrity.com/compoundint.php?bal=500&nval=40&int=4&pl=Quarterly']quarterly compounding in our compound interest calculator[/URL], we have 10 years * 4 quarters per year = 40 periods, so we have: [B]$744.43[/B]

GDP Deflator

Free GDP Deflator Calculator - Calculates the GDP Deflator using nominal and real GDP

Inflation and Real Rate of Interest

Free Inflation and Real Rate of Interest Calculator - Calculates Real rate of Interest, Inflation, and nominal interest rate before inflation.

Nominal Yield

Free Nominal Yield Calculator - Given an effective annual rate of interest based on a compounding period, this determines the nominal yield.

What is the annual nominal rate compounded daily for a bond that has an annual yield of 5.4%? Round

What is the annual nominal rate compounded daily for a bond that has an annual yield of 5.4%? Round to three decimal places. Use a 365 day year. [U]Set up the accumulation equation:[/U] (1+i)^365 = 1.054 [U]Take the natural log of each side[/U] 365 * Ln(1 + i) = 1.054 Ln(1 + i) = 0.000144089 [U]Use each side as a exponent to eulers constant e[/U] (1 + i) = e^0.000144089 1 + i = 1.000144099 i = 0.000144099 or [B].0144099%[/B]

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