ebbing eflopse bank and trust offers an APR of 41.09 percent compounded quarterlt on its credit cards. Vanishing vortex regional Bank offers an APR OF 39.78 percentcompounded daily on jts credit cards.A. what is rhe effective annual rate for ebbing eclipse bank and trust?B what is the effective annual rate for vanishing vortex bank and trust?C. which bank credit card is better?

Effective rate is the rate after considering the impact of compounding on the interest rate and more…

Answered: ebbing eflopse bank and trust offers an…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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How to do this question?
Suppose that on January 1 you have a balance of $3800 on a credit card whose APR is 13%, which you want to pay off in 1 year. Assume that you make no additional charges to the card after January 1. a. Calculate your monthly payments. b. When the card is paid off, how much will you have paid since January 1? c. What percentage of your total payment from part (b) is interest? a. The monthly payment is $ ☐. (Do not round until the final answer. Then round to the nearest cent as needed.)
You are the loan department supervisor for a bank. This installment loan is being paid off early, and it is your task to calculate the rebate fraction, the finance charge rebate (in $), and the payoff for the loan (in $). (Round dollars to the nearest cent.) AmountFinanced Number ofPayments MonthlyPayment PaymentsMade RebateFraction FinanceChargeRebate LoanPayoff $1,800 18 $126.89 12 $ $
COMPARING APR. You are offered two credit cards. The first is a credit card (CARD A) that has an APR of 24.99%. You are also offered a card (CARD B) that has 21.99% interest, but charges $100 annually. Which card that was offered is a better card? Show work.
You have just received credit card applications from two banks, A and B. The interest terms on your unpaid balance are stated as follows:1. Bank A: 20% compounded quarterly.2. Bank B: 19.5% compounded daily.Which of the following statements is incorrec1?(a) The effective annual interest rate for Bank A is 18.25%.(b)The nominal annual interest rate for Bank Bis 19.5%.(c) Bank B's term is a better deal because you will pay less interest on yourunpaid balance.(d) Bank A's term is a better deal because you will pay less interest on yourunpaid balance.

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