A bank offers 10.21 percent compounded semi-annually on its business loans. Calculate the EAR. Select one: a.10.07% b.9.63% c.11.03% d.10.47%

Q: Calculate the finance charge (in $), the finance charge per $100 (in $), and the annual percentage…

A: in this we have to calculate financial charges and we have to use given table.

Q: Calculate the finance charge (in $) and the annual percentage rate for the installment loan by using…

A: Amount Financed = $18400 Monthly payment = $424.08

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: A bank charges interest rate of 5.50% on loans. The interest rate compounds monthly. What is the…

A: Effective annual interest rate is referred as the interest rate which is adjusted for compounding…

Q: What is the outstanding balance of the loan after the 2nd year

A: Compound interest is the amount of interest charged on interest. In this method the interest…

Q: A financing company charges 1.5% every two months on a loan. Find the equivalent effective rate of…

A: Effective rate: It is the rate which is compounding one time in a year or yearly.

Q: Assuming a 360-day year, the interest charged by the bank, at the rate of 7%, on a 90-day,…

A: Given that: Note payable = $124800 Interest rate = 7% Period = 90 days

Q: The First Bank of Lending lists the following APR for loans. Determine the APY, or effective…

A: The effective rate of interest is the effective rate of interest per annum including the effect of…

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: Pacific Bank pays a 7.00% nominal rate on deposits, with monthly compounding. What effective annual…

A: The effective annual rate (EAR) is calculated using the formula,

Q: Calculate the finance charge (in $), the finance charge per $100 (in $), and the annual percentage…

A: Using excel Rate function

Q: Calculate the finance charge (in $), the finance charge per $100 (in $), and the annual percentage…

A: Loan amount (L) = $13000 Number of payments (n) = 36 Monthly payment (M) = $454 Let r = Monthly rate

Q: What is the rate of interest on a loan of $2,000, for 282 days, if the amount of interest is…

A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…

Q: Find the new balance, assuming that the bank charges 1 1/2 % per month on the unpaid balance. (Round…

A: Credit financing refers to the service that provides the facility to the buyers to buy things. In…

Q: Bank A pays 5% interest compounded annually on deposits, while Bank B pays 4.8% compounded monthly.…

A: Effective annual rate(EAR) is the rate that is actually earned or paid on investment or loan. It…

Q: A bank offered a commercial customer a one-year loan. A discounted note with a nominal rate of 13%…

A: A loan charges a percentage of the principal as interest to a borrower (the amount borrowed). The…

Q: bank offers personal loans at 4.7%p.a compounding monthly. The effective annual rate of interest…

A: Effective rate is rate of return after consider the impact of compounding on that and is more than…

Q: Calculate the finance charge (in $), the finance charge per $100 (in $), and the annual percentage…

A: AMOUNT FINANCED = $17.910 NO OF PAYMENT = 48 MONTHLY PAYMENT = $550.47 TOTAL PAYMENT = $550.47 x 48…

Q: A financing company charges 1.5% per month on a loan. Find the equivalent effective rate of…

A: An interest rate that is modified to eliminate the impacts of inflation in order to reflect the…

Q: Calculate the finance charge (in $) and the annual percentage rate for the installment loan by using…

A: Given: Amount Financed - $18,500 Number of payments Payment = 72 Monthly payment = $426.08 APR = ?

Q: A bank gives6-month 7.2% interest rate compounded monthly(the interest rate is that the bank applies…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Calculate the finance charge (in $) and the annual percentage rate for the installment loan by using…

A: The finance charge is that charge which is paid by the borrower on the amount borrowed.

Q: The First Bank of Lending lists the following APR for loans. Determine the APY, or effective…

A: The Annual Percentage Yield (APY) is a measure of the total return on an investment or the total…

Q: Calculate the finance charge (in $) and the annual percentage rate for the installment loan by using…

A: The annual percentage rate is the interest rate that is charged on the financed amount. When the…

Q: What is the annual percentage rate on a loan with a stated rate of 2 percent per quarter? A. 2.00…

A: In the given question we require to calculate the annual percentage rate on a loan if the stated…

Q: which of the following banks would you choose for a savings account based on the following rates…

A: Banks provide interest on deposited amount at fixed rate. Higher the rate, higher will be the…

Q: An entity took UAH 100,000 loan for 5 at 26% of annual interest rate. Interests are paid annually. A…

A: In an annuity due scheme, the periodic payment is made at the beginning of the period. First, we…

Q: what is the effective interest rate on the loan?

A: Information provided: Line o credit = 500,000 Stated interest rate = 10% Compensation balance…

Q: culating EAR First National Bank charges 11.4 percent compounded monthly on its business loans.…

A: EAR is the annual effective rate of interest and that is interest rate considered after the impact…

Q: Calculate the finance charge (in $), the finance charge per $100 (in $), and the annual percentage…

A: Solution : Formulae Formulae as above...

Q: A bank customer borrows X at an annual effective rate of 12.5% and makes level payments at the end…

A: The Annual Effective Rate is used to express the annual interest rate on a financial product, such…

Q: First National Bank charges 10.4 percent compounded monthly on its business loans. First United Bank…

A: Here, FN Bank Interest Rate is 10.4% Compounding Period is Monthly i.e. 12 FU Bank Interest Rate is…

Q: A bank offers an account with an APR of 5.8% and an EAR of 5.88%. How does the bank compound…

A: APR is the annual percentage rate. It refers to the quoted rate or the nominal rate. EAR is the…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.