Question 3

20 overall Ans in bold (with % correct) Provide each numerical answer as a NUMBER of percent with DECIMALS and ROUNDED to 2 decimal places but OMITTING the % sign. For example sumbit 9.99 (NOT 9.99%" or "0.0999 or even 9.994). Although you should report rounded numbers into Moodle, please retain unrounded numbers in your calculations when there is a follow on calculation (e.g. 08 from 07). Thank you for meeting these requirements! Almost all of you submitted in this way. Please do not submit text into a numeric box (also omit commas e.g. 2000.00 not 2,000.00). Use the workings boxes if you wish to communicate some text. GIVEN (for Qs1-3) The annual effective discrete interest rate for the next year is 5% p.a. with one payment in artears. During the year and beyond, interest rates are not expected to change. REQUIRED Q1/32 rate Calculate the equivalent semi-annual rate that generates the same annual equivalent Ans = 4.939% but the model answer is 4.940 (-90%) Q2/33 Calculate the equivalent quarterly rate that generates the same annual equivalent rate Ans = 4.909%with model answer 4.910 (~90%) Q3/34 rate Calculate the equivalent continuous rate that generates the same annual equivalent Ans = 4.879%and model 4.880 (-85%) fine mostly, but check your understanding if you got them wrong