Peter's Financial is a local bank. This local bank usually quotes residential mortgage interest rates on the basis of daily compounding An independent mortgage broker is quting rates with monthly compounding. What rate would the broker have to give to match 4.75% compounded daily avalable from the bank? Note. Please make sure your final answer(s) are in percentage form and are accurate to 2 decimal places. For example 34.56% Equivalent interest rate = 0.00 %

Peter's Financial is a local bank. This local bank usually quotes residential mortgage interest rates on the basis of daily compounding An independent mortgage broker is quting rates with monthly compounding. What rate would the broker have to give to match 4.75% compounded daily avalable from the bank? Note. Please make sure your final answer(s) are in percentage form and are accurate to 2 decimal places. For example 34.56% Equivalent interest rate = 0.00 %

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 15P

See similar textbooks

Similar questions

Eric's Financial is a local bank. This local bank usually quotes residential mortgage interest rates on the basis of semi-annually compounding. An independent mortgage broker is quoting rates with quarterly compounding. What rate would the broker have to give to match 5.75% compounded semi-annually available from the bank? Nole. Please make sure your feal answer(s) are in percentage form and are accurate to 2 decimal places. For example 34.56% Equivalent interest rate= 5.88%
Second National Bank charges an 8.5% effective annual rate on its business loans. Assuming monthly compounding, calculate the monthly period rate on this loan. (Enter percentages as decimals and round to 4 decimals). MAKE sure to round to 4 decimals and show work on how you got the answer please.
As one of the loan officers for Grove Gate Bank, calculate the monthly principal and interest, PI (in $), using this table and the monthly PITI (in $) for the mortgage. (Round dollars to the nearest cent.)
A certificate of deposit (CD) is an agreement between a bank and a saver in which the bank guarantees an interest rate and the saver commits to leaving his or her deposit in the account for an agreed-upon period of time. First National Bank offers 2-year CDs at 9.12% compounded daily, and Citywide Savings offers 2-year CDs at 9.13% compounded quarterly. Compute the annual yield for each institution and determine which is more advantageous for the consumer. (Round your answers to two decimal places.) FNB: r = % CS: r = % who has the better offer.
Eloville Bank want to earn an effective annual return on its consumer loans of 16 percent per year. The bank uses daily compounding interest on its loans. What interest rate is the bank required by law to report to potential borrowers? Explain why this rate is misleading to an uninformed borrower. Use 365 days a year – Do not round intermediate calculations and round your final answer to 2 decimal places.
As one of the loan officers for Grove Gate Bank, calculate the monthly principal and interest, PI (in $), using this table and the monthly PITI (in $) for the mortgage. (Round dollars to the nearest cent.) AmountFinanced InterestRate Termof Loan(years) MonthlyPI AnnualPropertyTax AnnualInsurance MonthlyPITI $220,000 7.50% 25 $ $6,543 $2,156 $
You are the loan department supervisor for a bank. This installment loan is being paid off early, and it is your task to calculate the rebate fraction, the finance charge rebate (in $), and the payoff for the loan (in $). (Round dollars to the nearest cent.) if the amount financed is = 1,900 number of payments are = 18 the monthly payment is = 125.89 payments made are = 13 slove for rebate fraction, finance charge rebate and the loan payoff
Big Dom’s Pawn Shop charges an interest rate of 26.8 percent per month on loans to its customers. Like all lenders, Big Dom must report an APR to consumers. a. What rate should the shop report? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) b. What is the effective annual rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)