Recently, a bank offered six-month CDs (Certificate of Deposit) at 6.0% compounded monthly. (Round your answers to two decimal places.) a) Find the annual yield of one of these CDs. b) How much would a $1,000 CD be worth at maturity? c) How much interest would you earn? d) What percent of the original $1,000 is this interest

Q: In one instance, a financial institution loaned you $20,000 for two years at an apr of 4.75% for…

A: Interest refers to the cost of borrowing money from the lender.

Q: how much will you have when it matures?

A: A certificate of deposit (CD) is a financial product that banks and credit unions offer to customers…

Q: An online bank is offering to pay 0.25% interest per month on deposits. Your local bank offers to…

A: For On line Bank:Interest rate (i)=0.25%Compounding=12 (monthly)For Local Bank:Interest rate (i)=…

Q: person borrows $2,850 on a bank credit card at a nominal rate of 18% per year, which is actually…

A: a.  Annual Percentage Yield      APY =[ (1+r)^n - 1]       APY = [(1+0.015)^12-1]       APY…

Q: If you sign a discount note for $4,400 at a bank discount rate of 8%, for 90 days, what is the…

A: Effective annual rate is defined as the actual rate that is earned on the investment. It shows the…

Q: You are buying a new home, and you have negotiated a 15-year mortgage loan with a local bank for an…

A: Annuity refers to the equal amount of payment made. In this case the monthly payments for loan…

Q: Investigate the effect of the interest rate on home loans by finding the monthly payment and the…

A: Data Given, Loan Amount (Principle) = $150000 Time period of loan (n)= 20 years Payment Interval =…

Q: For a S 1,314 deposit, a bank offers two choices: Account "A" pays interest at an APR of 8.3%.…

A: Variables in the question:Initial deposit =$1314Bank offers two choices:Account A pays interest at…

Q: The maturity value of a 4-month loan of $4,250 is $4,367.50. What is the annual simple interest rate…

A: The maturity value is $4367.50. The principal amount is . The time is  months. The objective is to…

Q: If the bank states an effective interest rate of 13.5% per year, and there are 52.15 weeks, how much…

A: Formula for calculating weekly interest rate is:

Q: The First Common Bank has advertised one of its loan offerings as follows: “We will lend you…

A: Interest: It can be defined as the cost incurred by the borrower related to the amount borrowed.

Q: Flat Rock Inc recently borrowed $55,000 from its bank at a simple interest rate of 9.2%. The loan is…

A: The loan agreement that states the interest amount would be added back to the amount borrowed, such…

Q: If you borrowed $1,175 for 11 months at a simple interest rate of 5.00% per annum, how much interest…

A: Interest = Principal * Rate * Time

Q: ank pays a simple interest rate of 4.1% on 30 to 179-day GICs of at least $100,000. What is the…

A: Simple interest rate is interest rate without compounding and is lower than the compounding…

Q: A CD, or “certificate of deposit,” is a type of savings account with a fixed rate and term, meaning…

A: Variables in the question:Initial deposit = $2200APR = 0.26% (compounded monthly)N=10 years

Q: annual interest rate on a credit card is 24.99%. If a payment of $100.00 is made each month, how…

A: We need to use NPER function in excel to calculate time to payoff loan. The formula is:…

Q: Bank America offers a stated annual interest rate of 5.0 percent, compounded quarterly, while Bank…

A: Bank America = 5% interest Bank USA= 5.10% interest Assume Present value $100

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: You have a bank deposit now worth $5000. How long will it take for your deposit to be worth more…

A: Interest is an additional amount which is earned on deposited amount for the period. It increases…

Q: Your bank offers a 10-year certificate of deposit (CD) that pays 6.5% interest, compounded annually.…

A: Time = t = 10Interest Rate = r = 6.5%Present Value = pv = $2000

Q: Your bank is offering a certificate of deposit with an APR of 6.02% compounded monthly. What is the…

A: Effective annual rate is computed by following formula-EAR = - 1 Where,EAR = effective annual rate…

Q: British Columbia Savings offers three-year term deposits at 10.8% compounded annually while your…

A: The compounding technique is related to the concept of Time value of money. The time value of money…

Q: Which bank would you prefer to borrow from?

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Q: A bank features a savings account that has an annual percentage rate of r = 5.8% with interest…

A: (A) n=p/yt Given t=10 years (p/y)=4 (since interest is compounded quarterly)

Q: A bank quotes you a nominal interest rate of 12%, compounded monthly, on a savings account. What is…

A: Monthly nominal interest rate (r) = 0.01 (i.e. 0.12 / 12)Number of compounding in a year (n) = 12…

Q: Suppose I secure a simple interest note for $4500.  The length of the note is 102 months and the…

A: Interest = Principal * rate * time  Interest = $4500 * 6.20% * 102 /12 Interest = $2,371.50

Q: Find the monthly payment needed to amortize a typical $220,000 mortgage loan amortized over 30 years…

A: COMPOUNDED MONTHLY RATE (5.3%/12) 0.441667% YEARS  (12*30) 360 PRESENT VALUE $220,000…

Q: and has a loan of $8,500 compounded quarterly for four years at 10%. What is the eff ere to view…

A: Effective interest rate is interest rate considering effect of compounding.

Q: Your bank is offering you an account that will pay 19% interest (an effective two-year rate) in…

A: Interest rate is 19%Time period is 2 yearsTo Find:Equivelent interest rate for6 months1 yearone…

Q: Find the interest rates earned on each of the following. Round your answers to the nearest whole a.…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.  Time value…

Q: 1. The Lexington Property Development Company has a RM10,000 note receivable from a customer due in…

A: Present value is the value of an investment in today’s time. It helps to make decisions better.

Q: A bank wishes to earn a 17% simple interest in discounting notes. If the term of the discount is 3…

A: Simple Interest: When the interest on the borrowed amount is computed on the principal at the loan…

Q: You wish to make 4 equal annual deposits into a savings account such that at the time of your last…

A:

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.