3. GMA pays 8% interest compounded semi-annually. GTV pays 8% compounded monthly.Which financing institution offers the higher effective annual rate?
Q: .I need help with finance homework questions asap. (rounded to 2 decimal places) What is the…
A: The Effective annual rate is referred to the interest rate that is actually earned on an investment…
Q: Suppose your credit card issuer states that it charges a 24.00% nominal annual rate, but you must…
A: Effective Annual Rate(EAR) = [(1+ nominal rate/n)^n]-1 where, n = compounding period
Q: A bank offers a loan that will require you to pay 9% per annum with semi-annual compounding. Which…
A: Given rate, 9% semi annual compounding
Q: What is the effective annual rate (EAR) if your credit card charges you 10.45 percent compounded…
A: The effective annual rate measures the rate of interest or return when the compounding is done on a…
Q: A lending institution charges interest at the rate of 3.5% per quarter, a. What is the nominal…
A: Interest rate per quarter = 3.5% a. What is the nominal interest rate? Nominal interest rate…
Q: A loan is offered with monthly payments and a 8.50 percent APR. What's the loan's effective annual…
A: Effective annual rate is the rate that is actually earned. It can be calculated Effective annual…
Q: A loan is offered with monthly payments and a 6.5 percent APR. What is the loan's effective annual…
A: In this question we need to compute the loan's effective annual rate if Annual percentage rate (APR)…
Q: Your company are offered a bank loan with an annual percentage ate (APR) of 5 percent with quarterly…
A: We need to use effective annual rate formulas below Effective annual rate = 1+rnn -1 r =…
Q: Q)The Central Bank pays 3.6% compounded monthly on certain types of deposits. What is the effective…
A: Effective annual return (EAR) is the real rate of return which shows the actual annual return with…
Q: If you borrow $4,600 at $850 interest for one year, what is your effective interest rate for the…
A: The Effective Annual Rate (EAR), also known as the annual equivalent rate (AER) or annual percentage…
Q: A credit card company charges 23.0% interest per year, compounded monthly. What effective annual…
A: The effective annual rate refers to the rate of return provided by the investment over a year…
Q: A loan is offered with monthly payments and a 9.75 percent APR. What's the loan's effective annual…
A: APR = 0.0975n = Number of compounding 12 (i.e. monthly compounding)EAR = ?EAR is annual rate after…
Q: Bank A pays 11.50% annual interest, compounded quarterly, on its savings accounts. Bank B wants to…
A: Effective rate of interest can be calculated by using this equation Effective rate =(1+i/m)m -1…
Q: If you borrow $7,500 at $550 interest for one year, what is your effective interest rate for the…
A: The effective rate of interest refers to the return on savings or interest on the investment…
Q: A loan is offered with monthly payments and a 11.75 percent APR. What's the loan's effective annual…
A: Annual rate (r) =11.75%Number of compounding (n) = 12Required:EAR = ?
Q: Determine the monthly payment for the installment loan. Amount Financed (P) =$1000 Annual…
A: We will use following formula to calculate monthly installment : Monthly Payment = Loan Amount ×…
Q: 3a. You are paying an effective annual rate of 18.974 percent on your credit card. The interest is…
A: Solution:- Effective annual rate means the net interest rate for an year, after effect of all the…
Q: Suppose your credit card issuer states that it charges a 17.00% nominal annual rate, but you must…
A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…
Q: Bank America offers a stated annual interest rate of 5.0 percent, compounded quarterly, while Bank…
A: Bank America = 5% interest Bank USA= 5.10% interest Assume Present value $100
Q: 4) The Toronto Estonian Credit union charges 7% compounded monthly on certain type of loan. The want…
A: Nominal Interest- The nominal interest rate is the stated interest rate that does not include…
Q: ts, which amounts to monthly compounding. What is the effective annual rate? a. 24.23%
A: Investors and consumers can compare interest rates across a range of financial products with…
Q: Bank ZLY is charging customers a loan rate of 9.2% APR compounded monthly. What is the equivalent…
A: Equivalent Effective Annual rate= It refers to that interest rate which is actually earned on a…
Q: A loan is offered with monthly payments and a 14.50 percent APR. What’s the loan’s effective annual…
A: Calculate the effective annual rate (EAR) as follows:
Q: The Central Bank pays 3.6% compounded monthly on certain types of deposits. What is the effective…
A: Given information: Interest rate is 3.6% Compounded monthly
Q: Answer the following Compound Interest problem using the provided formula ONLY. Show your complete…
A: Interest rates are stated in APR along with the compounding frequency. We have to establish an…
Q: Bank A pays 8% interest, compounded quarterly, on its money market account. The managers of Bank B…
A: Nominal rate of return is also called stated rate of return on an account. It does not take into…
Q: Bank A offers loans at an 8% nominal rate (its APR) butrequires that interest be paid quarterly;…
A: Given, The APR of bank A is 8% and interest paid quarterly.
Q: If i= 14.8% per year, compounded monthly. What is the effective interest rate per semiannual? (ABET,…
A: Interest rate (i) = 14.8% Number of compounding per year (m) = 12
Q: Suppose your credit card issuer states that it charges a 19.25% nominal annual rate, but you must…
A: Nominal annual rate = r = 19.25%Compound = n = Monthly = 12
Q: If you borrow $5,300 at $400 interest for one year, what is your annual interest cost for the…
A: The effective interest rate, also known as the effective annual interest rate (EAR) or annual…
Q: A loan is offered with monthly payments and a 16.50 percent APR. What's the loan's effective annual…
A: EAR means Effective annual rate.It is calculated by following formula:-Effective annual rate = -…
Q: If you borrow $5,300 at $900 interest for one year, what is your annual interest cost for the…
A: The effective rate is calculated with the effect of compounding of interest for the frequency given…
Q: loan is offered with monthly payments and a 10 percent APR. What’s the loan’s effective annual rate…
A: Effective Annual Rate = [(1+ Annual Periodic rate /n)n] -1 Annual Periods = 12 months
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- 3. A bank CD that pays 7.58 percent compounded annually. (Round answer to 2 decimal places, e.g. 15.25%.) what is the Effective annual rate %?If i= 14.8% per year, compounded monthly, What is the effective interest rate per semiannual? (ABET, S01) Select one: Oa. 15.85% Ob. 7.63% O c. 7.4% O d. 1.23% Oe. 7.91%Assume the following annual payments of notes payable of Demi Company with 10% discount rate. 1st Year - P300,0002nd Year - P200,000 3rd Year - P400,000 What is the present value of the annual payments?
- Bank A pays 8% interest, compounded quarterly, on its money market account. Themanagers of Bank B want its money market account’s effective annual rate to equal thatof Bank A, but Bank B will compound interest on a monthly basis. What nominal, orquoted, rate must Bank B set?If you borrow $7,500 at $550 interest for one year, what is your effective interest rate for the following payment plans? (Input your answers as a percent rounded to 2 decimal places.) a. Annual payment b. Semiannual payments c. Quarterly payments d. Monthly payments Effective Rate of Interest % % %If you borrow $4,600 at $850 interest for one year, what is your effective interest rate for the following payment plans? (Input your answers as a percent rounded to 2 decimal places.) X Answer is complete but not entirely correct. a. b. Annual payment Semiannual payments C. Quarterly payments d. Monthly payments Effective Rate of Interest 18.48 % 19.33 X % 19.80 X % 20.13 X %
- If you borrow $7,300 at $800 interest for one year, what is your effective interest rate for the following payment plans? Note: Input your answers as a percent rounded to 2 decimal places. a. Annual payment b. Semiannual payments c. Quarterly payments d. Monthly payments Effective Rate of Interest % % % %Determine the monthly payment for the installment loan. Amount Financed (P) =$1000 Annual Percentage Rate (r)= 4.5% ,Number of Payments per Year (n)= 12 ,Time in Years (t) =2 A loan is offered with monthly payments and a 11.75 percent APR. What's the loan's effective annual rate (EAR)? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Effective annual rate %
- Bank A offers loans at an 8% nominal rate (its APR) butrequires that interest be paid quarterly; that is, it uses quarterly compounding. Bank Bwants to charge the same effective rate on its loans, but it wants to collect interest ona monthly basis, that is, to use monthly compounding. What nominal rate must BankB set?3. An interest rate is quoted as being 7.5% compounded quarterly. What is the effective annual interest rate? (ME board).A three-year bank CD paying 6.82 percent compounded monthly. Calculate effective annual interest rate (EAR)? (Round answer to 2 decimal places, e.g. 15.25%.) Effective annual rate % A three-year bank CD paying 7.32 percent compounded annually. Calculate effective annual interest rate (EAR)? (Round answer to 2 decimal places, e.g. 15.25%.)
