I need help with finance homework questions asap. (rounded to 2 decimal places) 7 If a bank charges an interest rate of 0.18% per week on loans, what rate must the bank quote?
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I need help with finance homework questions asap. (rounded to 2 decimal places) 7
If a bank charges an interest rate of 0.18% per week on loans, what rate must the bank quote?
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- A bank offers personal loans at 4.7%p.a compounding monthly. The effective annual rate of interest (EAR) is ( to the nearest two decimal places): Question 17Answer a. 4.76% b. 4.80% c. 4.78% d. 0.39%a) You have a bank account that earns 6.8% interest rate. How much must you deposit (prinicipal) in order to have $4279 in your bank in 11 months? b) What is the interest rate?A bank charges a 12% bank discount on short-term loans. A borrower needs GH¢2000cash to be repaid with interest in 9 months. What size loan should he ask for, and how much interest will he pay?
- Allied Bank pays 4% interest compounded annually on deposits, while bonkers Bank pays 3.5% compounded daily.a. Based on the EAR which bank should you use?b. Could your choice of banks be influenced by the fact that you might want to with draw your funds during the year as opposed to at the end of the year? Assume that your funds must be left on deposit during an entire compounding period in order to receive any interest.6.I need help with finance homework questions asap. (rounded to 2 decimal places) What is the effective annual rate on a loan with a quoted rate of 7.45% compounded semi-annually?It is now January 1, 20x8. Today you will deposit P100,000 into a savings account that pays 8%.a. If the bank compounds interest annually, how much will you have in your account on January 1, 20x9?b. What will your January 1, 20x9 balance be if the bank uses quarterly compounding?2. It is now January 1, 2x16, and you will need P100,000 on January 1, 2x20. Your bank compounds interest at an 8% annual rate. How much must you deposit today to have a balance of P100,000 on January 1, 2x20?3. If you deposited P200,000 in a bank account that pays 6% interest annually, how much will be in your account after five (5) years?4. What is the present value of a security that will pay P290,000 in 20 years if securities of equal risk pay 5% annually?5. What is the future value of a 5%, 5-year ordinary annuity that pays P8,000 each year? If this was an annuity due, what would be its future value?
- It is now January 1, 20x8. Today you will deposit P100,000 into a savings account that pays 8%. a. If the bank compounds interest annually, how much will you have in your account on January 1, 20x9? b. What will your January 1, 20x9 balance be if the bank uses quarterly compoundingwhich one is correct please confirm? QUESTION 9 Your monthly statement from your bank credit card shows that the monthly rate of interest is 1.5%. What is the annual effective rate of interest you are being charged on your credit card? a. 18.64% b. 18.00% c. 29.74% d. 19.56%Bank A pays 10% interest compounded annually on deposits, while Bank B pays 9% compounded daily. Based on the EAR (or EFF%), which bank should you use?
- A bank offers a loan that will requires you to pay 8% interest compounded semiannually. Which of the following is closest to the EAR charged by the bank? A. 8.16% B. 9.79% C. 6.53% D. 16.32%3. A bank offers an account with an APR of 5.8% and an EAR of 5.88%. How does the bank compound interest for this account?A) weekly compoundingB) monthly compoundingC) semiannual compoundingD) annual compoundingBank A pays 5% interest compounded annually on deposits, while Bank B pays 4.8% compounded monthly. Based on the EAR (or EFF%), which bank should you use? Describe how you reach your final answer
