logo

CuriousTab

CuriousTab

Discussion


Home Aptitude Compound Interest Comments

  • Question
  • Determine the nominal rate of interest if: The periodic rate is 0.83% per month


  • Options
  • A. 7%
  • B. 8%
  • C. 9%
  • D. 10%

  • Correct Answer
  • 10% 

    Explanation

    j=mi

  • Tags: Bank Exams, Bank PO

    Compound Interest problems


    Search Results


    • 1. For a nominal interest rate of 8.4%, what is the compounding frequency if the periodic interest rate is:0.7

    • Options
    • A. 9
    • B. 10
    • C. 11
    • D. 12
    • Discuss
    • 2. For a nominal interest rate of 8.4%, what is the compounding frequency if the periodic interest rate is:2.1

    • Options
    • A. 1
    • B. 2
    • C. 3
    • D. 4
    • Discuss
    • 3. For a nominal interest rate of 8.4%, what is the compounding frequency if the periodic interest rate is 8.4

    • Options
    • A. 1
    • B. 2
    • C. 3
    • D. 4
    • Discuss
    • 4. For a nominal interest rate of 8.4%, what is the compounding frequency if the periodic interest rate is 4.2

    • Options
    • A. 1
    • B. 2
    • C. 3
    • D. 4
    • Discuss
    • 5. Calculate the periodic interest rate corresponding to 9.5% compounded monthly

    • Options
    • A. 0.7916
    • B. 0.8916
    • C. 0.9916
    • D. 0.6916
    • Discuss
    • 6. Other things being equal, would an investor prefer an interest rate of 10.5% compounded monthly or 11% compounded annually for a two-year investment?

    • Options
    • A. 1232
    • B. 1243
    • C. 1254
    • D. 1262
    • Discuss
    • 7. If an investment can earn 4% compounded monthly, what amount must you invest now in order to accumulate $10,000 after 3 years?

    • Options
    • A. 8695.61
    • B. 6786
    • C. 3478
    • D. 4092
    • Discuss
    • 8. Kramer borrowed $4000 from George at an interest rate of 7% compounded semiannually. The loan is to be repaid by three payments. The first payment, $1000, is due two years after the date of the loan. The second and third payments are due three and five years, respectively, after the initial loan. Calculate the amounts of the second and third payments if the second payment is to be twice the size of the third payment.

    • Options
    • A. 1389
    • B. 1359
    • C. 1379
    • D. 1339.33
    • Discuss
    • 9. What amount must you invest now at 4% compounded monthly to accumulate $10,000 after 3 year

    • Options
    • A. 8695
    • B. 7695
    • C. 3695
    • D. 4695
    • Discuss
    • 10. What periodic payment will an investor receive from a $9000, four-year, monthly payment GIC earning a nominal rate of 5.25% compounded monthly?

    • Options
    • A. 29.38
    • B. 39.38
    • C. 49.38
    • D. 59.38
    • Discuss


    Comments

    There are no comments.

Enter a new Comment