Your paycheck was just deposited and you noticed that had overdrawn your bank account 10 days ago. Your account was overdrawn by $176 and have been charged an overdraft fee of $39. What is the Effective Annual Rate? Convert to a percent and round to 2 decimal places.

Q: Friendly's Quick Loans, Incorporated, offers you $7.50 today but you must repay $9.85 when you get…

A: We need to use effective annual return (EAR) formula below.EAR =( 1 +Periodic interest rate)number…

Q: After selling a bunch of old "junk" on e-bay, you have $500. You deposit the money into an account…

A: The annual percentage rate incorporates all the fees, charges, interest, rewards, and payments that…

Q: 7. Assume that today you made an initial deposit in the amount of $16,000 into a savings account…

A: Future value of an initial deposit paying simple interest is calculated using following equation…

Q: f your credit card calculates interest based on 17.35​% ​APR, compounded quarterly ​: a) What are…

A: The effective annual rate of interest is the real return on the savings account when the effects of…

Q: Friendly's Quick Loans, Incorporated, offers you "$4.20 for $5.20 or I knock on your door." This…

A: The interest rate on a credit card or loan is commonly expressed as APR, or annual percentage rate.…

Q: You have just remembered that four years ago you placed $1,000 in a bank account. If the bank was…

A: PV x (1+r)n=FV

Q: the amount you need to save each month

A: given   fv=25000 n= 5*12=60 interest i = 3.5% PMT =?

Q: 8. On April 1, you opened a savings account at Main Street Savings Bank with a deposit of $817.25.…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Q: I now have $23,000 in the bank earning interest of 0.50% per month. I need $33,000 to make a down…

A: Future value of the amount is the amount being deposited and amount of interest accumulated on…

Q: Mansukhbhai

A: The objective of this question is to find out how many months it will take to pay off an unpaid…

Q: periodically in order to make the account last the specified amount of time. Round your answer to…

A: Present value of annuity formula: PVA=A×1-11+rmm×nrm where, PVA = account balance r = rate of…

Q: Suppose you deposit $1000 into a savings account earns 2% and is compounded semiannually. If you…

A: Future value is the compounded value of a sum of money invested for a period of time at a specified…

Q: Your savings account currently has a balance of$32,300. You opened the savings account two yearsago…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: II. Solve the following problems involving credit cards. Round your answers to the nearest…

A: Variables in the question:12. APR=22.2%13. Average balance for last credit card…

Q: I now have $30,000 in the bank earning interest of 0.75% per month. I need $40,000 to make a down…

A: Compound = Monthly = 12Present Value = pv = $30,000Monthly Interest Rate = rate = 0.75%Future Value…

Q: nk will lend you $4,000 for 45 days at a cost of $50 interest. What is your effective rate of…

A: Effective interest rate is the interest rate after considering the impact of compounding on interest…

Q: You took out a loan that must be repaid with level payments at the end of each year. The loan has an…

A: Since you have posted multiple questions, we will provide the solution only to the first question as…

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: 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 you have saved $216 each month for the last 7 years to make a down payment on a house. The…

A: The objective of the question is to calculate the total amount in the savings account after 7 years…

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: 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: Spartan Credit Bank is offering 6.2 percent compounded daily on its savings accounts. You deposit…

A: Annual interest rate = 6.2% Number of compounding per year = 365 Deposit amount = $ 4600

Q: If you earn 5% per year on your bank account, how long will it take an account with $110 to double…

A: The present value is the present worth of the amount that is paid or received in the future.

Q: You owe $2,500 in 5 months and $4,750 in 15 months. Your creditor has agreed to let you make one…

A: The calculation of interest amount or the total amount using single interest rate where the interest…

Q: you deposit $5,000 in a bank t years ago. Your current account balance is $8,200, and the bank…

A: Given: Particulars Amount Present value(PV) $5,000 Future value(FV) $8,200 Interest rate…

Q: Find the tripling time with 4 decimal places on a bank account that pays 7.2% APR if interest is…

A: Compounding is referred to the concept in which the interest earned on an investment also earns…

Q: You have just deposited X dollars in your bank account that pays interest of 6 percent p.a. You…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: Match each account

A: The effective rate of interest refers to the interest rate which shows the return on an investment…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.