Civil Service Exam Reviewer · Simple Interest and Profit/Loss · hard
What is the effective annual interest rate of 16% compounded quarterly?
- 16.99%
- 16%
- 20%
- 17.23%
Answer
A. 16.99%
Solution
Effective rate = (1 + 0.16/4)⁴ − 1 = (1.04)⁴ − 1 = 16.99%.
More Simple Interest and Profit/Loss questions
- On ₱90,000 at 9% for 90 days, how much more is the ordinary interest (360-day year) than the exact interest (365-day year)?
- What amount must be invested now at 8% simple interest to have ₱79,800 after 5 years?
- A lender charges 6% simple interest PER MONTH. If Marco borrows ₱42,000 for 10 months, how much must be repaid in total?
- An item costs ₱7,800. At what price should it be marked so that after giving a 25% discount, the store still earns 25% profit on cost?
- A manufacturer sells a fan to a wholesaler at 25% profit, the wholesaler sells to a retailer at 20% profit, and the retailer sells to a…
- The cost price of 15 items equals the selling price of 8 items. What is the percent profit?
- Two phones were each sold for ₱4,900. One was sold at a 30% gain and the other at a 30% loss (both on cost). What was the overall result?
- An appliance has a cash price of ₱35,000. On installment, the buyer pays 20% down and the balance plus 10% per year simple (add-on)…
- What is the difference between the compound interest (compounded annually) and the simple interest on ₱17,000 at 4% for 2 years?
- ₱190,000 is invested at 4% compounded annually. How much is the compound interest after 2 years?