4) The Toronto Estonian Credit union charges 7% compounded monthlyon certain type of loan. The want to convert that to a rate compoundedsemi-annually, that maintains the same effective rate. Determine:a. The effective rate of 7% compounded monthly.b. The nominal rate (j) of interest compounded semi-annually thatis equal to 7% compounded monthly.

Nominal Interest- The nominal interest rate is the stated interest rate that does not include…

Answered: 4) The Toronto Estonian Credit union…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

What is the effective annual interest rate of a 8.4% bank loan compounded monthly?
Jérôme Kerviel Bank charges an APR of 11.80 per cent, compounded monthly, on its business loans. Société Générale charges a six per cent semiannual rate on similar loans. Which option is best from the borrower's point of view? A) Jérôme Kerviel Bank's loan is the best option because its EAR is 12.46 per cent. B) Société Générale's loan is the best option because its EAR is 12.36 per cent. C) Jérôme Kerviel Bank's loan is the best option because its monthly rate is 0.98 per cent, which is smaller than Société Générale's monthly rate at one per cent. D) Société Générale's loan is the best option because its EAR is 6.09 percent. E) Both options are identical from a borrower's perspective.
A loan is offered with monthly payments and a 16.50 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 %
Calculate the finance charge (in $) and the annual percentage rate for the installment loan by using the APR formula. (Round dollar amounts to the nearest cent and percentages to one decimal place.) Amount Number of Monthly Financed Payments Payment Finance Charge $100,000 72 $2,035.50 $ APR %
For a bank loan assuming a one-year repayment period and 14% interest, the monthly payment is S (Round to the nearest cent.) For a bank loan assuming a one-year repayment period and 14% interest, the total cost is $ (Round to the nearest cent For the add-on loan method with one year repayment period and 12% interest, the monthly payment is S (Round to the nearest cent.) For the add-on loan method with one-year repayment period and 12% interest, the total cost is S (Round to the nearest cent If Shirley pays the bank loan back after six months, she will save"S (Round to the nearest cent) If Shirley pays the add-on loan back after six months, she will receive a rebate

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