A department store has offered you a credit card that charges interest at 1.05% per month, compounded monthly. a. What is the nominal interest (annual percentage) rate for this credit card? b. What is the effective annual interest rate?
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A: Equivalent nominal rate of interest = 1.5 % per month * 12 months = 18 % Equivalent effective rate…
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A: Given: P=500 A=40 n=16 i=?
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A: Given, Loan amount = 9,000 Time = 90 days Interest rate = 5%
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A: Given Borrowed amount P=280,000 Interest rate =1.5% compounded monthly. Time (n) = 48 months
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A: Nominal interest rate and the effective annual rate are calculated as follows:-
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Q: What is the effective annual interest rate?
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A: a. Effective annual interest rate = 1+inn-1=1+5%22-1=1+0.0522-1=1.0252-1=1.050625-1=0.050625=5.0625%…
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- A man borrowed a sum of money and promised to pay annually for 8 years at an interest rate of 12% compounded annually. If the total interest for his debt will be ₱ 185,000 after 8 years, how much will his annual payments be?Money deposited in a certain account for which the interest is compounded continuously. If the balance doubles in 6 years, what is the annual percentage rate?College Financial Sources, which makes small loans to college students, offers to lend $500. The borrower is required to pay $40 at the end of each week for 16 weeks. (Compounding Period: Week) a) Find the interest rate per week. b) What is the nominal interest rate per year? c) What is the effective interest rate per year?
- A student obtains a loan to pay one year of college tuition, which costs $18,000 with 6% which he promise to pay starting from August 1 until December 31 on the same year. What is the value of the exact simple interest and the total amount payable.Mr. Bill deposited 100,000 pesos in bank account earning interest at the rate of 10% compounded quarterly, what will it become at the end of 10 years?A bank saving account offers 4% compounded on a quarterly basis. A customer deposit $200, in this type of account, at the start of each quarter starting with the first deposit on the first of January and the fourth deposit on the first of October. What is the total amount in his account at the end of the year?
- 18% of the nominal interest rate; Calculate the 3-month effective interest rate for a) compounded three months b) compounded monthly.You owe $120,000 from your ex-girlfriend and promise to pay 6% simple interest. How much will you pay at the end of 1 year and 6 months?A total of $50,000 is borrowed and repaid with 60 monthly payments, with the first payment occurring one month after receipt of the $50,000. The stated interest rate is 6% compounded monthly. What monthly payment should be made?
- QUESTION 3 1.1) Calculate the future value (rounded to the nearest whole number) of monthly deposits of R500, made for 30 years, at a nominal interest rate of 4% p.a. Then find the value of the monthly withdrawals (rounded to the nearest whole number) that can be made from this annuity for a period of 20 years, at a nominal interest rate of 5% p.a. Future value of monthly deposits = Monthly withdrawal =Rafael invested $2,000 in a business that yields an annual interest rate of 10% compounded continuously. How much would he get. approximately at the end of 5 years from his investment?“A company borrowed $100000 from a bank at an interest rate of 10% compounded monthly. The loan will be repaid in 36 equal monthly installments over three years. What is the amount of this monthly installment payment?”