You are paying an effective annual rate of 15.33 percent on your credit card. The interest is compounded monthly. What is the annual percentage rate on this account

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: You can afford monthly deposit of $85 into an account that pays 6% compounded monthly. How long will…

A: Monthly Deposit(PMT) = $85 Interest Rate = 6% Interest Rate per month(rate) =  6%/12 = 0.50% Future…

Q: A bank offers to pay you a stated annual rate of 5%, compounded daily. How many years will it take…

A: Future value refers to the value of a current asset at some future date affected due to inflation,…

Q: How long would you have to wait for a deposit of $1,625 to earn $34 in interest? Assume that the…

A: Interest = Principal * Rate * Time

Q: A loan of $1000 is paid off in 12 monthly payments of $120 each. What is the effective annual…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: Most people prepare for retirement by depositing money into a monthly or annual savings plan. An…

A: Here, Monthly Deposit is $454 Nominal Interest Rate is 19% Compounding Period is Quarterly i.e 12

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: The Men's Store charges 1.25 percent interest per month. What is the effective annual rate?

A: Every business firm suffers from the scarcity of funds. There are several investment…

Q: The annual rate of interest on a mortage loan is 11 1/2% the monthly interest payment is $453.76..…

A: Annual interest rate = 11.5%   Monthly interest rate = Annual interest rate / 12 = 11.5%/ 12…

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: Suppose you have a credit card with a balance of $3295.89 that charges 19.85% APR on unpaid…

A: Credit cards are used very often now days and credit cards are used for short term credits.Balance…

Q: The quoted annual rate on your credit card is 14 percent, and there is a $30 annual fee. If your…

A: A credit card is a financial tool that allows individuals to borrow funds from a financial…

Q: A life insurance company offers loans to its policyholders against the cash value of their policies…

A: Given: Nominal annual interest rate = 6% (0.06) Compounding frequency = MonthlyTo calculate the…

Q: Your credit card charges 27.90% on an annual basis and the interest is compounded monthly. What…

A: When the borrower borrows a loan from the lender, he has to a rate of interest on the borrowed…

Q: Suppose on January 1st you deposit $100 in an account that pays a nominal interest rate of 11.33463%…

A: Principal, P = $ 100Nominal interesr rate = Inom = 11.33463% Daily interest rate, Rdaily = Inom /…

Q: If your credit card calculates interest based on 16.75% APR, compounded quarterly: (a) What are your…

A: The yearly rate that incorporates the magnifying effect of many compounding periods each year of…

Q: If you’re average daily balance on your credit card in June is $1,200 and your APR is 18%, how much…

A: Here,AverageDaily Balance of Credit Card is $1,200APR is 18%Late Charges is $29

Q: What amount can you borrow if you make nine quarterly payments of $5,300 at a 16% annual rate of…

A:

Q: You get an offer for a credit card that charges 13.99% interest APR, compunded monthly. What…

A: Effective Annual Interest Rate: The actual return on a savings account or any other investment that…

Q: What is the value (in $) of Jorge's account after 16 months? (Round your answer to the nearest…

A: Information Provided: payment made = $150 Term = 16 months Interest rate = 6% compounded monthly

Q: A 12-month certificate of deposit at Middlesex Savings Bank is advertising a 1.2% annua percentage…

A: The question is based on the concept of Cost Accounting.

Q: a bank offered its clients a credit card which had a rate of 18.55% compounded daily. if it added…

A: The nominal rate is the stated interest rate or advertised rate on a financial product or loan…

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: You have 45 remaining monthly payments of $688 until you pay off your car loan with interest.…

A: In order to find the current balance of the loan today one has to find the Present value of the…

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: ou could earn 3% on your money in your checking account, as long as the minimum balance does not…

A: The cost of checking account is the total cost which one has to bear for not maintaining the minimum…

Q: Suppose your credit card issuer states that it charges a 17.00% nominal annual rate, but you must…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: A credit card has a $910 balance and a 19.19% annual percentage rate. The minimum required monthly…

A: We will use formula of Outstanding Loan balance to know the balance left after 41 payments :…

Q: ts, which amounts to monthly compounding. What is the effective annual rate?   a. 24.23%

A: Investors and consumers can compare interest rates across a range of financial products with…

Q: Shylock Bank offers a savings account with an effective interest rate of 15% and weekly compounding.…

A: Given information: Effective annual interest rate (EAR) = 15% or 0.15 As the compounding is done…

Q: f a savings bank pays 5.5% interest every 3 months, what are the annual nominal and effective…

A: Nominal interest rate is the interest rate without considering impact of compounding and flat…

Q: ou have monthly interest rate of 1.65% and a balance on your credit card of 2000.00. If you paid the…

A: To determine the interest amount and percentage that goes towards reducing principle.  The amount of…

Q: Find the annual simple interest rate of a loan, where $800 is borrowed and where $904 is repaid at…

A: Interest charged on the principal amount at a fixed rate for a fixed period of time is known as…

Q: How much would you need to deposit in an account now in order to have $2000 in the account in 15…

A: Future Value is that amount which includes the interest which is received by investing the amount at…

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

A:

Q: Your credit card has a balance of $4500 and an interest rate of 22%. The credit card requires a…

A: Credit cards refer to debt instruments that are provided by financial institutions to individuals…

Q: Assume  you have secured a loan of $10,000 from a bank  which will be paid in one year. The bank has…

A: Month Instalment Interest Paid = Opening Balance  x 0.31% Principal Opening Balance Closing Balance…

Q: You have $5500 in credit card bills at an annual interest rate of 26%. You have not made a payment…

A: The objective of the question is to calculate the total amount owed on a credit card bill after two…

Q: You owe the bank $1,245 in 9 months.  How much do you need to deposit in an account today, earning…

A: As per the given information: Amount owed to the bank - $1,245 in 9 months Earning - 3.25% APR…

Q: you sign a discount note for $9,500 at a bank discount rate of 9% for 3 months, what is the…

A: A discount note is a short-term debt obligation issued by highly-rated corporations or…

Q: effective interest rate

A: Formula: effective interest rate= [1+ interest rate/period)^ period]-1 *100

Q: Master Card and other credit card issuers must by law print the Annual Percentage Rate on their…

A: Effective annual rate(EAR) measures the annual percentage rate over a period of time after giving…

Q: An investor is trying to determine the proper interest rate to apply to an account. The account pays…

A: We need to use effective interest rate formula below to calculate quarterly interest rate.r= Annual…

Q: A commercial bank offers you a credit card with an annual percentage rate APR = 9%, compounding…

A: Annual Percentage rate = APR = 9%Compound = n = Monthly = 12

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.