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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%.)
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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%.)
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- 4. A bank CD that pays 7.38 percent compounded semiannually. (Round answer to 2 decimal places, e.g. 15.25%.) what is the Effective annual rate %?1.A bank CD that pays 7.38 percent compounded quarterly. (Round answer to 2 decimal places, e.g. 15.25%.) what is the effective annual rate %? 2. A bank CD that pays 7.38 percent compounded monthly. (Round answer to 2 decimal places, e.g. 15.25%.) whats is the Effective annual rate %?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 %?
- A three-year bank CD paying 7.02 percent compounded quarterly. Calculate effective annual interest rate (EAR)? (Round answer to 2 decimal places, e.g. 15.25%.)A bank CD that pays 7.88 percent compounded monthly. (Round answer to 2 decimal places, e.g. 15.25%.) Effective annual rate 7.95 %A bank CD that pays 7.11 percent compounded semiannually. Calculate the effective annual interest rate (EAR).
- If you borrow $4,600 at $850 interest for one year, what is your effective interest rate for the following payment plans? (Input your answers as a percent rounded to 2 decimal places.) X Answer is complete but not entirely correct. a. b. Annual payment Semiannual payments C. Quarterly payments d. Monthly payments Effective Rate of Interest 18.48 % 19.33 X % 19.80 X % 20.13 X %Compare the stated annual rate (r) to the effective annual rate (EAR). What relationship exists between compounding frequency and the stated and effective annual rates? Amount of Compounding Initial Stated Annual Frequency, m Deposit Case Deposit ($) Rate, r (%) (times/year) Period (years) A 2,500 6 2 5 B 50,000 12 6 3 C 1,000 5 1 10 D 20,000 16 4 6A 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%
- 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 % % % %Calculate and compare the effective rates of interest for saving accounts paying: (a.) a nominal rate of 3.65%; compounded quarterly (b.) a nominal rate of 3.5%; compounded monthlyA credit card company charges 23.0% interest per year, compounded monthly. What effective annual interest rate does the company charge? Note: The effective annual interest rate is the return on an investment or the rate owed in interest on a loan when compounding is taken into account. O 25.71% 25.22% 25.59% O24.95% G
