Suppose you have received a credit card offerfrom a bank that charges interest at 1.4% per month,compounded monthly. What is the nominal interest(annual percentage) rate for this credit card? What isthe effective annual interest rate?

Q: What per period interest rate should you use in the annuity formula to do this calculation? In other…

A: The effective annual interest rate is a crucial concept in finance that is used to describe the true…

Q: A credit card company compounds monthly and charges an interest of 1 ½ % per month. What is the…

A: Effective Interest Rate It is a rate that discounts the approximate future cash flows over the…

Q: Estimate the annual percent rate for the add on loan Using the given number of payments and annual…

A: As per the information provided:  N = 48 R = 8% To determine: We have to estimate the annual…

Q: OYou are told the effective interest rate on an account is 9.1.%. if the interest is compounded…

A: The question is based on the concept of calculation of effective interest rate with continuous…

Q: Suppose you wish to borrow $400 for four weeks and the amount of interest you must pay is $20 per…

A: The objective of this question is to calculate the Annual Percentage Rate (APR) for a loan of $400…

Q: You borrow a five-year $13,000 loan with monthly payments of S250. What is the annual percentage…

A: PV = 13000, PMT = -250, N = 5*12, FV = 0 use rate function in Excel monthly rate = 0.48%

Q: Find the annual simple interest rate of a loan, where $800 is borrowed and where $888 is repaid at…

A: Given information: Principal (P) = $800 Amount repaid (A) = $888 Time in year (t) = (4 / 12) =…

Q: You are considering a car loan with a stated APR of 6.78% based on monthly compounding. What is the…

A: Effective annual rate is the rate of interest that actually paid or earned. It can be calculated by…

Q: If you take out a 4 year loan for $16,500 at your bank and pay the quarterly payments for the 4…

A: Total interest is = total payments - loan

Q: A payday loan servicer has a stated APR of 23.68%. In reading the fine print on the loan you see…

A: Nominal Rate = 23.68% = 0.2368Number of Compounding Periods = 365

Q: Find the value of the annuity at the end of the indicated number of years. Assume that the interest…

A: Amount of deposit(m): $800 Frequency(n): annually Rate(r): 1% Time(t): 30 years

Q: You are told that the nominal rate of interest is 3.7% per 4 months payable monthly. Calculate the…

A: The Effective Annual Rate (EAR), also called the Annual Equivalent Rate (AER) or maybe the…

Q: Find the APR(true annual interest rate) to the nearest half percent for the following loan.Use the…

A: Annual Percentage Rate = Finance Charge / Amount Financed

Q: Find the annual simple interest rate of a loan, where $500 is borrowed and where $570 is repaid at…

A: Amount repaid (FV) = $570 Amount borrowed (P) = $500 Period (n) = 4 Months   Annual simple interest…

Q: If $500 is borrowed and the interest after 18 months is $45, what is the annual interest rate for a…

A: Given:

Q: Suppose you purchase a home and obtain a 15-year fixed-rate loan of $195,000 at an annual interest…

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

Q: To payoff a loan of $1000 you need to make 40 payment of $36.56 per month. What rate of interest are…

A: Annual percentage rate refers to the interest rate paid by the borrower to the lender on a yearly…

Q: Calculate the annual payments for a $15,644 loan that you will repay over 5 years. The bank gives…

A: Annual payments (P) on a loan (PV) of amount $15,644 with an interest rate ( r ) of 6.6% and with 5…

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: EZ Pay Loans will lend you $100 today with repayment of $117.50 due in 1 month. Determine the…

A: Given Information : Present Value of loan : $ 100 Future Value : $ 117.50 Time : 1 month

Q: uppose that one has a bank loan for P15,584.48, which is to be repaid in equal end-of-month…

A: In this we need to calculate present value factor and from that you will get monthly payment.

Q: You are told that the nominal rate of interest is 3.46% per quarter year payable monthly. Calculate…

A: Nominal Rate of Interest = r = 3.46%Interest rate compound = rc = Quarterly = 4Payable Compound = pc…

Q: Find the APR of the loan given the amount of the loan the number and types of payment in the add-on…

A: Annual percentage rate (APR) : It refers to the yearly generated interest by a Principal amount that…

Q: Find the annual simple interest rate of a loan, where $300 is borrowed and where $315 is repaid at…

A: Simple interest is an amount of interest that is paid on the principal portion of a loan or deposit.

Q: In a discount interest loan, you pay the interest payment up front. For example, if a 1-year loan is…

A: Excel Spreadsheet: