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 places
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A: Interest rate (r) = 6% Number of compounding per year (m) = 12
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A: The effective annual rate of interest is the actual or the real rate of interest paid or received…
Q: You are told the effective interest rate on an account is 2.1%, if the interest is compounded…
A: Formulas:
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A: Future Value = 12,336.42 6% Continuous Compounding
Q: calculate the accrued interest for the following notes (round to two decimal places, if necessary).…
A:
Q: What will be the total interest earned on a 6%, $2,000 note receivable that is due in nine months?
A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…
Q: nterest rate of 10% pa with semi-annual compounding. Note that another way of stating this rate is…
A: In this we need to calculate the effective interest rate.
Q: The effective annual rate (EAR) for a savings account with a stated APR of 4% compounded daily is…
A: Effective Annual Interest Rate Effective annual interest rate refers to the actual rate of interest…
Q: A daily perpetuity of $3.33 is to be valued when the effective annual rate of interest is 8.25%.…
A: Effective annual rate =8.25% or 0.0825 Daily rate =( 0.0825/365 ) Daily perpetuity = $ 3.33
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…
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A: A method of computing interest amounts in which the compounding effect was not considered by the…
Q: Use the given annual interest rate r and the compounding period to find i, the interest rate per…
A: Information Provided: 5.45% compounded monthly
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: the credit account statement below, the values of the annual percentage rate (APR), finance charge,…
A: Annual percentage is charged on annual basis and monthly is charged on monthly basis.
Q: Find the nominal rate compounded monthly equivalent to the rate of interest of 8 % compounded…
A: Compound interest also called interest on interest. It is the addition of interest in the principal…
Q: Find the interest rate for a $9000 deposit accumulating to $11,517.62, compounded quarterly for 9…
A: Interest rate (r) = n[(A/P)1/nt - 1] Where, Number of compounding in a year (n) = 4 Years (t) = 9…
Q: Determine the amount of each semi-annual interest payment for a $1,000 face value note payable with…
A: Solution: Introduction: When a Note or bond is issued, the issuer must pay a specific fixed rate 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: Suppose you deposit $ 1296 today and your account will accumulate to $ 5637 in 9 years. What is the…
A: Maturity Amount, A = $ 5637Principal deposited, P = $ 1,296Time period, T = 9 years
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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: What is the effective interest rate corresponding to a nominal annual rate of. (Round your…
A: Whenever the impacts of compounding over time are considered, the effective annual interest rate is…
Q: An account pays 7% annual interest compounded monthly. What is the effective interest rate on this…
A: A 7% annual interest compounded monthly implies that a monthly interest of 7%/12 is being compounded…
Q: If the balance of an account (which earns interest quarterly) is $9,734.33 at the beginning of the…
A: Please refer next sheet
Q: Find the effective rate of interest corresponding to a nominal rate of 2.3%/year compounded…
A: Nominal Rate (r) = 2.3% p.a. If interest is compounded annually, then effective rate of interest…
Q: Find the nominal annual rate of interest compounded quarterly that is equivalent to 4.8% compounded…
A: Nominal Annual Interest Rate: The nominal interest rate is calculated by multiplying by the number…
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A: Interest rate can be of two different types. 1. Effective annual Interest 2. Nominal Annual…
Q: Use the given annual interest rate r and the compounding period to find i, the interest rate per…
A: GIVEN, annual interest rate (r) = 5.45% frequency of compounding (m) =12 (monthly compounding)
Q: 1.If the nominal rate of interest is 48% compounded bi-monthly, find the rate of interest per…
A: Note : As per the guidelines, only first question will be answered. Given information : Nominal…
Q: For the given principal, interest rate, and time period, determine the amount of interest that would…
A:
Q: Find the effective rate of interest for an account with a stated rate of 14% compounded monthly.…
A: Effective annual interest rate is referred as the interest rate which is adjusted for compounding…
Q: Find the compound amount for the deposit. Round to the nearest cent. $1800 at 7% compounded…
A: Given, Principal =$1800 r=7% n=4 years
Q: What is the interest rate per period and the frequency of compounding per year in each of the…
A: Given that, Interest rates = 18% compounded semi annually = 16% compounded…
Q: What rate of interest j4 must be earned for deposits of $100 at the end of each month to accumulate…
A: Following details are given in the question: Deposit (Payment) each month = $100 Time period = 18…
Q: e table for the first month below. Monthly payment End-of-month Interest Principal principal e…
A: You have to use table to get monthly payments.
Q: A deposit of $8441 will amount to $11789 in 10 years with interest compounded monthly. What is the…
A: Here, we need to use the future value Formula, which says that the future value of an amount P at r%…
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: An investment account earns 6.9% Interest, compounded continuously. What is the effective annual…
A: Given: Interest rate is 6.9%
Q: If an invoice indicates that interest at the rate of 0.69% per month will be charged on overdue…
A:
Q: The Bank gives an advertisement of 15% account that yields 15.56% annually. How often is the…
A: Bank Account Interest Rate = 15% Bank Account Yield = 15.56%
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…
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 places
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- Find the effective rate of interest for an account with a stated rate of 14% compounded monthly. State your answer as a percent rounded to two decimal places. The effective rate of interest of this account is %.Given an interest rate of 4.0% compounded monthly, determine the effective rate of interest. Answer as a percentage rounded to two decimal places. reff = Check %If a credit card you are interested in has an APR of 16%, what would the Daily Periodic Rate (DPR) be? (express your answer as a percent and as a decimal) O.0438% = .000438 O 000438% = .0438 O.16% = .0016 O 1.33% = 1.33
- Compute the present values of the following annuities first assuming that payments are made on the last day of the period and then assuming payments are made on the first day of the period: (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Present Value Present Value Interest Rate (Payment made on last day of period) (Payment made on first day of period) Payment Years (Annual) 748.09 8. 14 % 8,668.26 14 7 21,022.93 24 70,412.54 32compute number of days sales in receivables round your calculation and answer assume 365 days ina yearWhat would be the annual percentage yield for a savings account that earned $51 in interest on $750 over the past 365 days? (Enter your answer as a percent rounded to 1 decimal place.)
- From this partial advertisement: $86.83 per month for 60 months $3,700 used car cash price $50 down payment a. Calculate the amount financed. Amount financed Finance charge $ b. Calculate the finance charge. Note: Round your answer to the nearest cent. 3,650 Deferred payment price S 1,559 80 c. Calculate the deferred payment price, Note: Round your answer to the nearest cent. S 5.250.00You are told the effective interest rate on an account is 2.1%, if the interest is compounded continuously. What is the annual percentage rate for the account? Give your answer to four decimal places. The annual percentage rate is 2.1222 %.Give typing answer with explanation and conclusion CapitalOne 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 21.24%, with interest paid monthly, what is the card's EFF%?
- What is the APR if the monthly rate of interest a credit card company charges on outstanding balances is 1.62%? Select one: O a. APR =(1.0162)^12) -1 = 0.2127, and APR = 21.27% O b. APR = ((1.0162)^7) - 1 = 0.1191, and APR = 11.91% O C. APR =((1.0162)^52) - 1 = 1.3063, and APR = 130.63%If the interest earned by a savings account paying an APR of 1% is compounded quarterly, what percent of the current balance is added to the account as interest every three months during the year? What about for 4%, 5%, and 7%? (Enter an exact answer and use decimals if needed.) percent of current balance added as interest for 1% APR: percent of current balance added as interest for 4% APR: percent of current balance added as interest for 5% APR: percent of current balance added as interest for 7% APR: 28Master 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%
