Q: A bank offers 0.5% effective monthly interest. What is the effective annual rate with monthly…
A: Effective annual interest rate(EAR) refers to the actual interest rate which is received on deposits…
Q: Determine the monthly payment for the installment loan. Amount Financed (P) Annual Percentage…
A: in this we have to calculate present value factor monthly and from that we will get monthly…
Q: ARAB Bank pays 0.074 percent, compounded weekly (based on 52 weeks), on an 8-month certificate of…
A: The effective annual rate of interest is the real return on the savings account when the effects of…
Q: Determine the effective rates of interest for the following nominal rates of interest: 9% compounded…
A: To Find: Effective interest rate
Q: Explain the meaning of a 20% annual percentage rate (APR) quotedby the credit c.ird company? And how…
A: Answer: Annual percentage rate (APR) applies to the interest rate charged annually to borrowers and…
Q: pays a 9.75% nominal rate on deposits, with monthly compounding. What effective annual rate (EFF%)…
A: The effective annual rate can be computed as follows :- EAR = (1+i / x)^x - 1 = (1 + 0.0975/12)^12…
Q: A monthly deposit of R161 is made once a month into an account at an interest rate of 18% pa…
A: Monthly deposit (M) = R 161 r = 18% per annum = 1.5% per month n = 13 deposits
Q: A given account accrues two kinds of deposits for a period of 7 years. One is a leveled deposit of…
A: Deposit account is a financial service offered by banks and other financial institutions to their…
Q: Determine the interest rate earned on a $1,500 deposit when $1,680 is paid back in one year.
A: Details given are : Present value of deposit = $1500 Future value of deposit = $1680 Time period = 1…
Q: The total inter
A: Interest = Principal amount * Annual interest * months/12
Q: Suppose on January 1st you deposit $100 in an account that pays a nominal interest rate of 11.33463%…
A: Principal, P = $ 100Nominal interesr rate = Inom = 11.33463% Daily interest rate, Rdaily = Inom /…
Q: A loan company advertises that $100 borrowed for one year may be repaid by 12 monthly installments…
A: Effective annual interest is the amount which is expressed in terms of percentage paid annually to…
Q: Leopard Co. uses the installment sales method to recognize revenue. Customers pay the installment…
A: ANSWER : Notes reported at the present value which is amount net of which interest is to be…
Q: a bank charges one and one-half percent per month on the unpaid balance for purchases made its…
A: Present value is the sum of the current value of money of future cash flows. It is also known as a…
Q: For the transaction shown below, determine the amount of money in the account at the end of year 3…
A: The future value is the future worth of the amount that will be paid or received at future.
Q: American Express and other credit card issuers must by law print the Annual Percentage Rate (APR) on…
A: Information given : Annual Percentage Rate (APR) = 15.75% = 0.1575 Compounding frequency = Monthly…
Q: a. A Visa credit card issued through Frost Bank carries an interest rate of 1% per month on the…
A: Effective Annual Rate is a modified rate of return where it considers the compounding effect.…
Q: Determine the interest rate earned on a $450 deposit when $475 is paid back in one year.
A: This question require us to compute the interest rate. Other details : Present value = $450 Future…
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: Compute the periodic rate and interest in the first period for a $2,000 loan with 6.5% APR for the…
A: Loan Amount = $2000 APR (Annual Percentage Rate) = 6.5%
Q: The bank statement opposite shows transactions over a one-month period for a savings account that…
A: Interest on savings account is calculated on daily balance in the account.
Q: Determine the interest rate earned on a $200 deposit when $208 is paid back in one year.
A: In this question we require to compute the interest rate that will make deposit of $200 into $208 in…
Q: a $1,400 deposit when $1,800 is paid back in one year. (Round your answer to 2 decimal places.)
A: Interest earned is the amount of interest gained from assets that pay the bearer a regular series of…
Q: Compare the stated annual rate (r) to the effective annual rate (EAR). What relationship exists…
A: The effective annual rate of interest is the real return on the savings account when the effects of…
Q: Compute the size of the final payment for the following loan. Principal $ Periodic Payment $…
A: A loan is basically a type of debt that an individual or the other entity incurs. The lender, who…
Q: Connie put $7,525 into a term deposit on March 10th. The deposit earns a simple interest rate of 5%.…
A: Deposit amount = $7,525 Period from march 10th to july 4 = 116 days Interest rate = 5%
Q: On a 365-day basis, what is the effective annual rate of using trade credit if terms are 2/10, net…
A: If the payment is done in 10th day, the discount is given for 2 else full payment is required if…
Q: . If a bank advertises a savings account that paysan 8% nominal interest rate compounded…
A: The question is based on the concept of calculation of effective annual interest rate in case of…
Q: You wish to make 4 equal annual deposits into a savings account such that at the time of your last…
A:
Q: o Several payments are to be made by a person with a lot of debts. 1st payment: P2,000 compounded…
A: “Since you have asked multiple questions, we will solve the one question for you. If you want any…
Q: You owe the bank $1,245 in 9 months. How much do you need to deposit in an account today, earning…
A: As per the given information: Amount owed to the bank - $1,245 in 9 months Earning - 3.25% APR…
Q: Assuming a 360-day year, when a $12,919, 90-day, 6% interest-bearing note payable matures, total…
A: Note Payable: A Note payable is a written promissory note which represents a specific amount of cash…
Q: Sixty monthly deposits are made into an account paying 8% nominal interest compounded monthly. If…
A: Payment per period can be calculated using PMT function in excel. PMT(rate, nper, pv, [fv],…
Q: Assuming a 360-day year, the interest charged by the bank, at the rate of 6%, on a 90-day,…
A: Interest charged by the bank = Amount of notes payable x rate of interest x no. of days / 360
Q: You are paying an effective annual rate of 8.974 percent on your credit card. The interest is…
A: Answer Effective Rate = (1 + Nominal Rate / n)n - 1 effective annual rate = 8.974% Number of…
Q: A credit card company charges an interest rate of 1.375% per month on the unpaid balance of all…
A: Effective rate of interest is the real return on savings or any interest paying investment when…
Q: Find the effective rate of interest per? a. Compounded Daily (360 Days) b. Compounded Daily (365…
A: It is given in the question that the interest rate is 24% per annum, now the question is that this…
Q: Federal Savings Bank is offering a 6-month CD (certificate of deposit) with a rate of 4.5%…
A: The real interest that an investor earns on the investment and a borrower pays on loan after…
Q: A company issues a $10,000 two-year, 4% note payable, repayable in 8 quarterly installments with…
A: Firm issues various securities to collect the funds. Note payable is short term agreement to pay the…
Q: Calculate and compare the effective rates of interest for saving accounts paying: (a.) a nominal…
A: Formula for computation of effective rates is as follows:Effective rates=1+rmn-1where,r=Interest…
Q: A credit card quotes a rate as 21.5% compounded monthly. a) What is the effective annual interest…
A: This question has two parts : In part (a) we need to compute the effective annual interest rate…
Q: If an invoice indicates that interest at the rate of 0.69% per month will be charged on overdue…
A:
Q: five year promissory note with a face value of $5000, bearing interest at 6% compounded…
A: To calculate amount to be paid for promissory note first of all we will calculate future price after…
Q: Assuming a 360-day year, when a $11,392, 90-day, 10% interest-bearing note payable matures, total…
A: Interest expense for 90 day period = issue price × Interest rate × 90/360
Q: American Express and other credit card issuers must by law print the Annual Percentage Rate (APR) on…
A: Effective Annual Rate: The effective annual rate (EAR) is the rate of interest or the real rate of…
Q: A bank offers 6.00% on savings accounts. What is the effective annual rate if interest is compounded…
A: The real interest that an investor earns on the investment and a borrower pays on loan after…
Q: First Bank of Midesto Medeque pays a 6.01% nominal rate of interest compounded weekly. What is the…
A: Step1: Calculating the effective rate of interest. We have,Effective rate of interest = [1+r/m]m…
1. Calculate the effective annual rate for a certificate of deposit that pays 4.1% APR
compounded monthly.
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- 5. Assume you deposit RM1,000 into a savings account every three months that compounds interest semiannually. a. Determine the payment period (PP) and compounding periods (CP) b. State the payment period greater than or less than the compounding period.What is the Effective Annual Rate (EAR) on a deposit account with a stated Annual Percentage Rate (APR) of 10.6% and monthly compounding? Enter your answer as a percentage rounded to 2 decimal placesDetermine the interest rate earned on a $450 deposit when $475 is paid back in one year.
- Master Card and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. If the APR is stated to be 19.00%, with interest paid monthly, what is the card's EFF%? a.18.58% b. 19.52% с. 20.75% d. 21.94% e. 22.65%For each of the following ordinary annuities, calculate the interest and principal portion of the payment indicated. Principal Interest Payment Frequency Loan Term Payment Number to Find 1 $5,000.00 8% compounded quarterly monthly 3 years 16 2 $45,000.00 7.65% compounded monthly monthly 5 years 23a. A Visa credit card issued through Frost Bank carries an interest rate of 1% per month on the unpaid balance. Calculate the effective rate per semiannualand annual periods.b. If the card’s interest rate is stated as 3.5% per quarter, find the effectivesemiannual and annual rates.
- A 2-year certificate of deposit that pays 9.85% compounded monthly is preferred to 2-year CD that pays 10% compounded annually. O TRUE FALSE.American Express and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. If the APR is stated to be 7.00%, with interest paid monthly, what is the card's EFF%?American Express and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. If the APR is stated to be 17.00%, with interest paid monthly, what is the card's EFF%? Select the correct answer. a. 18.39% b. 17.29% c. 15.09% d. 16.19% e. 19.49%
- Determine the number of months (rounded off to the nearest month) required for a deposit of $2968.84 to earn a $216.72 interest at 7.57%.Determine the amount of each semi-annual interest payment for a $1,000 face value note payable with a 10% annual stated rate.Given the annual interest rate and a line of an amortization schedule for that loan, complete the next line of the schedule. Assume that payments are made monthly. Annual Interest Paid on Interest Rate Payment Paid Principal Balance 11.6% $425.57 $64.23 $361.34 $6,280.78 Fill out the amortization schedule below. Annual Interest Paid on Payment Balance Interest Rate Paid Principal 11.6% $425.57 $64.23 $361.34 $6,280.78 (Round to the nearest cent as needed.)
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