If your credit card’s APR is 24% compounded daily, what isthe effective annual interest rate that you are paying?

Q: If you sign a discount note for $5,500 at a bank discount rate of 9% for 3 months, what is the…

A: Effective interest rate is the amount of money saved on an investment when compounding concept is…

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: If you sign a discount note for $7,500 at a bank discount rate of 9% for 9 months, what is the…

A: Effective Annual Rate: The effective annual rate of interest is the actual or the real rate of…

Q: A loan is offered with monthly payments and a 17.00 percent APR. What’s the loan’s effective annual…

A: Given; Nominal interest rate (r): 17% Time period (n): 12 months

Q: A person pays interest on a loan daily at a nominal annual interest rate of 16%. What is most nearly…

A: Effective annual interest rate (EAR) formula: EAR=1+RMM-1 where, R= nominal interest rate m =…

Q: You put $1, 000 into a savings account today that offers a 5% APR with semi-annual compounding…

A: Interest rate is the rate that is charged on the money (Principal) lent by the lender to the…

Q: You are considering a car loan with a stated APR of 6.78% based on monthly compounding. What is the…

A: Effective annual rate is the rate of interest that actually paid or earned. It can be calculated by…

Q: If you deposit $100 in a savings account at the end of each month for 2 years, the balance will be a…

A: Ordinary Annuity means a series of equal payments that are made over a fixed length of time at the…

Q: A loan is offered with monthly payments and a 6.5 percent APR. What is the loan's effective annual…

A: In this question we need to compute the loan's effective annual rate if Annual percentage rate (APR)…

Q: Suppose you owe $1,100 on your credit card. The annual percentage rate (APR) is 18%, compounded…

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

Q: A car loan requires 30 monthly payments of $199.00 starting today. At annual rate of 12 percent…

A: Loan (mortgage) amortization schedule refers to a schedule which is prepared to shows the periodic…

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 borrow $5000 at an APR of r (as a decimal) from a lending institution that compounds interest…

A: Interest rate is the proportion of amount loaned on which a lender charger as interest to the…

Q: Suppose you have accumulated $22,000 in credit card debt. If the interest rate on the credit card is…

A: Present Value = Annuity * PVAF (Periodic rate, Number of Periods )

Q: What are the weekly payments on a 6-year, $80,000 loan if the interest rate is 14%?

A: Using excel PMT function

Q: If the bank states an effective interest rate of 13.5% per year, and there are 52.15 weeks, how much…

A: Formula for calculating weekly interest rate is:

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

A:

Q: How much do you need to invest in an account earning an annual interest rate of 3.493% compounded…

A: The present value of an investment refers to the sum amount of money that will be required today in…

Q: The quoted rate on your credit card is 18 percent and the card has a $57 annual fee. If your average…

A: Transactions in credit card is chargeable with monthly interest rate. Finance charge =average daily…

Q: If the bank is paying 8% interest compounded quarterly, how much must you deposit today in your…

A: The formula to calculate the present value of future cash inflow is C/(1+r)n, where C is the cash…

Q: A car loan requires 30 monthly payments of $199.00, starting today. At an annual rate of 12 percent…

A: In the given question we require to calculate the amount of money lent from following details:…

Q: The Cardex Credit Card Company charges a nominal 24 percent interest on overdue accounts, compounded…

A: Effective interest rate is the interest rate that is earned or paid after considering the…

Q: If a bank was offering a nominal rate of return of 12% compounded monthly, what is the annual…

A: Formula: Annual effective rate = ( 1 + r / N )N - 1 R = rate of return N = Period

Q: If you borrow $24398 with an annual rate of 9% compounded monthly and make a payment of $282 every…

A: Here we will use the concept of time value of money. As per the concept of time value of money the…

Q: 7. If the Nominal or Headline Annual Rate of a credit card that charges interest daily is 25%, what…

A: The annual equivalent rate refers to the interest rate of a loan or a financial product that derives…

Q: Solve the attachment

A: The amount to be paid at the end can be calculated by adding interest to the opening balance. The…

Q: You are paying an effective annual rate of 15.33 percent on your credit card. The interest is…

A: Calculation of annual Percentage of rate is shown below:

Q: how much money must you put in a savings account today?

A: PV is the money value in today’s terms which is to be received at some future date whereas FV is the…

Q: while at the bank, you see a brochure with two saving account options. One pays interest at 4.35%…

A: The real interest that an investor earns on the investment and a borrower pays on loan after…

Q: A bank quoted 10% annual interest rate. If the bank compounds the interest rate quarterly, what…

A: Quarterly rate = Annual rate / Number of quarters in a year Quarterly rate =10% /4 Quarterly rate…

Q: A department store has offered you a credit card that charges interest at 1.75% per month compounded…

A: Computation:

Q: Bank ABC is offering a rate of return of 12.25% APR compounded daily on its credit cards.  What…

A: Nominal Rate of return is 12.25% Compounding frequency is 365(as compounded daily) To Find:…

Q: you make 11 semi annual deposits of 550 pesos into a savings account the interest rate is 4.72%…

A: Interest rate=4.72% compounded quarterly Interest rate per quarter=4.72%4=1.18% Interest rate per…

Q: Your bank account compounds interest monthly and has an annual percentage rate of 24 percent. What…

A: When the effects of compounding over time are considered, the effective annual interest rate is the…

Q: If you invest $2,538.00 in an account earning an annual interest rate of 3.153% compounded…

A: Interest is the fee paid to investor for investing funds over a period of time. It is the…

Q: A loan is offered with monthly payments and a 10 percent APR. What is the loan's effective annual…

A: In the given question we need to calculate the Effective annual rate (EAR) from the details given.

Q: you recieve a credit card offer that charges interest at 1.75% per month compounded monthly. What is…

A: The nominal rate of interest is the rate that is free from the compounding effect. it is also known…

Q: You take out a $7,000 car loan that calls for 60 monthly payments starting after 1 month at an APR…

A: The present value of annuity refers to the current value of regular payments made at fixed intervals…

Q: You are paying an effective annual rate of 8.974 percent on your credit card. The interest is…

A: Answer  Effective Rate = (1 + Nominal Rate / n)n - 1 effective annual rate = 8.974% Number of…

Q: If a credit card charges 1½% interest every month, what are the nominal and effective interest rates…

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

Q: you receive a credit card offer that charges interest at 1.75% per month compounded monthly. What is…

A: Information Provided: Interest rate = 1.75% Compiunding = monthly

Q: You have just received an offer from a bank for a credit card with a quoted rate, or APR, of 18…

A: In the given question we need to compute the Effective annual rate (EAR).

Q: Suppose you deposit $20,000 in an account today that pays 4% interest, compounded annually. How long…

A: Here, 20,000 is deposited today and future value is $80,000. Want to calculate how many years it…

Q: Suppose you wish to borrow $300 for four weeks and the amount of interest you must pay is $10 $ ⁢…

A: Annual percentage rate (APR) is the percentage which helps to calculate the cost of borrowing. It…

Q: A person pays interest on a loan semi - annually at a nominal annual interest rate of 16%. What is…

A: effective annual interest rate (EAR) formula: EAR=1+RMM-1 where, R= nominal interest rate M =…

Q: If the nominal rate of interest paid on a savings account is 2% compounded monthly, what is the…

A: In this question we need to calculate the effective rate of interest.