How can we calculating effective Interest Rates based on Payment Periods?

Q: What is a simple interest rate?

A: Interest is the cost of borrowing money, where the borrower pays a fee to the lender for the loan or…

Q: Is it possible for a one-year coupon bond to have a negative nominal interest rate? Explain, how?

A: Yes, it is possible for a one-year coupon bond to have a negative nominal interest rate as long as…

Q: Why would a bank lending officer be interested in thecash flow statement of a company that is…

A: Cash flow refers to the quantity of cash or cash-equivalent that a corporation gets or expends as…

Q: Define interest and explain how interest rates vary based on risk, maturity, loan size, and…

A: The interest rate is the return that an individual receives from the financial asset in the economy.…

Q: Give an example of a loan repayment plan?

A: A loan repayment plan shows the way in which loan will be repaid. It explains in detail the number…

Q: Karen Wilson thinks that she needs to borrow $7,600 for 2 She doesn’t have a very good credit…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: In preparation for Sandara’s college education, her parents want to save ₱400,000 after 12 years.…

A: Given information,  Future value (F)= ₱400,000 Interest rate (r)= 2% Compounding period (m)= 4…

Q: Write the formula developed for calculating compound interest?

A: Compound interest refers to the interest calculated on the principle amount, thus increasing the…

Q: What is Effective interest?

A: Effective interest rate can be described as the interest rate gained or paid in actual on a project.…

Q: How much money do you need to deposit in a bank each month if you are planning to have $5000 in four…

A:

Q: Bank A charges 12% compounded monthly on its business loan. Bank B charges 11.8% compounded daily.…

A: The best bank to borrow money can be selected based on the following method.

Q: Which is the better investment, a fund that pays 5% compounded annually or one that pays 4.8%…

A: Discretely compounded interest is determined and added to the head at explicit spans (e.g., every…

Q: If you purchase $24,000 in U.S. Treasury Bills with a discount rate of 4.9% for a period of 26…

A: Interest for 26 week = Principal * Discount Rate * (26 / 52 ) = 24000 * 0.049 * 0.50 = 588

Q: Distinguish between Simple interest and Compound Interest?

A: Interest rate refers to the percentage of a principal amount charged by a lender to a borrower.

Q: Summarizes some of the interest formulas?

A: Simple interest = (P*R*T)/100 where, P : Principal amount            R : Rate of interest per annum…

Q: why is it critical for consumers to truly understand the effect of interest on their credit cards?

A: A credit card is a payment card that enables the owner to borrow funds to pay for purchases. Since…

Q: What are the applications of partial derivatives in economics?

A: The derivative of a function of a single variable that depicts quickness of change in function value…

Q: When is the simple interest scheme used?

A: Simple interest is a method which is used to calculate interest charged on fixed deposit, loan and…

Q: Given the situation , choose the correct formula to solve the problem: A personal account earmarked…

A: When a series of payments(P) are received by an individual at equal/regular time intervals, he is…

Q: How much money will you have in seven yearsif you deposit $7,000 in the bank at 8.5%…

A: Compound interest rate is addition to the interest of interest. It can be applicable both loan and…

Q: If the interest rate is zero, then $100 to be paid in10 years has a present value that isa. less…

A: The present value refers to the today’s value of the future amount that adjusted with the existing…

Q: Interest rates: why are interest rates increasing on student loans or mortgages?

A: Secured Loan:- A secured loan is one that is supported by secured financial assets owned by the…

Q: What are the two types of interest rates used in equivalence calculations?

A: Equivalence calculation is the calculation of interest rate received for an investment at the end of…

Q: Please show work

A: The amount deposited 5 years ago is $1,000 and the amount deposited one year ago is $2,000.The…

Q: f a coupon bond has two years to​ maturity, a coupon rate of 8​%, a par value of ​$1000​, and a…

A: Answer: Given, Coupon rate = 8% Par value = $1000 Yield to maturity = 12% Calculation:…

Q: what are zero-coupon bonds also called?

A: Answer: A zero-coupon bond is a bond that is sold at a discounted value or lesser value than par. It…

Q: Write the formula of Effective interest?

A:

Q: f you deposit $10000 into a fund paying interest 6%. How much you get after one yea

A: Given the deposit amount = $10000 Interest rate = 6%

Q: Differentiate between Simple interest and Compound interest?

A: In economics, interests are the costs of borrowing money. The economic agent who is borrowing the…

Q: What is Compound interest?

A: Simple Interest: The simple interest is the interest that is paid on the principal amount. For…

Q: Define the term Yield to Maturity?

A: Yield to maturity (YTM) is a rate of return of a bond or debenture if it held till its maturity date…

Q: Which is the most desirable form of a lump-sum settlement?

A: A lump sum settlement implies that the person who claims will receive the whole amount in a single…

Q: Sarah Maddox wants to buy a new car that will cost $15,000. She will make a down payment in the…

A: (a) The individual wants to purchase the new car and the cost of the car is given to be $15,000 and…

Q: Write the Summary of Compound-Interest Formulas?

A: Answer - Compound-Interest Formula - Compound interest formula helps to calculate the total return…

Q: 3.57 Consider the following three individuals. Just after their 19th payment: o Robert Dixon had a…

A: An installment loan is an expansive, general term that alludes to by far most of both individual and…

Q: Why certificate of deposit is considered as lending investment

A: Answer-

Q: Provide answers in the form of a percentage to three decimal places . (a).What is the effective…

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Q: How is an Effective Interest Rate calculated?

A: The effective rate of interest is an important concept in economics.  The effective rate of interest…

Q: Use the internet to research the Unitedhealth care group set of bonds issued. Based on the bonds’…

A: Am not able to download the Unitedhealth Group issued bonds unfortunetly. I tried downloading this…

Q: You deposit $ 9,030 in an account that pays 3 % simple interest.  How much do you have after 4…

A: Simple interest: Interest is a quick and easy technique of calculating the interest charge on a…

Q: Which Interest rate is better to use the simple interest or compounded interest plan, explain your…

A: The interest rate is the amount charged on the principal by the borrower to the borrower to use the…

Q: You are thinking of purchasing a house. The house costs $350,000. You have $50,000 in cash that you…

A: Annual Payments refers to the (x) the total amount of payments anticipated to be paid or received,…

Q: What is balance of payment?

A: Economics is a social science that discusses economic behavior regarding their unlimited wants in…

Q: If you are LOANING money to another party, would you prefer to offer a 12% interest rate compounded…

A: In economic and financial transactions, an individual will always prefer an alternative that gives…