suppose that you overdrew your bank account by $200. the bank charge you a fee of $30 and your paycheck will be deposited in 5 to cover the overdraft. please calculate the period rate apr and aer that you pay for this overdrew
Q: A bank account earns 6% simple interest. If you deposit $1,000 and then do not make any additional…
A: We need to calculate future value of $1,000 deposited today at 6% simple interest after 5 years.…
Q: Suppose your credit card issuer states that it charges a 24.00% nominal annual rate, but you must…
A: Effective Annual Rate(EAR) = [(1+ nominal rate/n)^n]-1 where, n = compounding period
Q: If you withdraw part of your money from a certificate of deposit before the date of maturity, you…
A: Amount of penalty is simple interest for 3 months
Q: Your bank account pays interest with an EAR of 4% What is the APR quote for this acount based on…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Assume a bank offers an effective annual rate of 7.20%. If compounding is monthly what is the APR?…
A: Annual percentage rate is the rate of interest which is charged to borrowers by the lenders and…
Q: A bank charges 1 ½% per month on the unpaid balance for purchases made with its credit card. This is…
A: The equivalent effective annual rate can be calculated through the compounding interest formula. The…
Q: the apr on the card is 12%, and you are not going to use the cardinal paid in full. assume you owe…
A: Credit debt = $1,383 Interest Rate = 12% APR Monthly Payment = 140
Q: A client at Southern Trust just made a deposit of $1,000 into an account expected to earn an…
A: Present value of future amount Present value (PV) and future value (FV) are related to each other…
Q: You are the loan department supervisor for a bank. This installment loan is being paid off early,…
A: To calculate the rebate fraction: Set up the rebate fraction by using the sum-of-the-digits formula.…
Q: What is the annual cost of a checking account with a monthly fee of $1.50 and a processing fee of…
A: Annual cost = Monthly fees * Number of months in a year + Processing fees per check * Number of…
Q: bu want to lend $10,000 as a bank deposit in a private bank with an interest rate 4 % compound…
A: In this we need to find out future value and than find out interest on that.
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: You are the loan department supervisor for a bank. This installment loan is being paid off early,…
A: We need to use sum of digit method for calculation of rebate fraction. The formula is Sum of digit…
Q: )If your credit card calculates interest based on 17.35% APR, compounded quarterly : a) What are…
A: The effective annual rate is the actual rate of interest a loan will charge in a year after taking…
Q: What is the annual opportunity cost of a checking account that requires a $300 minimum balance to…
A: The opportunity cost is the cost of opportunity lost at the time of choosing one investment option…
Q: Would you rather have a savings account that pays 5% interest compounded semiannually or one that…
A: Let assume $1000 invested for 1 years
Q: You took a $500 cash advance by using checks linked to your credit card account. The bank charges…
A:
Q: You took a $300 cash advance by using checks linked to your credit card account. The bank charges…
A: Given, Cash received as advance = $300 Bank charges = 1% on cash advance APR = 20%
Q: You decide to discount a$5250, 345-day note at 3% to your bank at a discount rate of 4.5% on day…
A: Calculation of Proceeds:Assuming there are 360 days in a year.The proceeds are $5,309.80.Excel…
Q: ou could earn 3% on your money in your checking account, as long as the minimum balance does not…
A: The cost of checking account is the total cost which one has to bear for not maintaining the minimum…
Q: You are the loan department supervisor for a bank. This installment loan is being paid off early,…
A: Rebate is the amount that is given to the lender in lieu of the interest foregone by the lender on…
Q: You are the loan department supervisor for a bank. This installment loan is being paid off early,…
A: Amount financed (F) = $4700 Number of payments = 36 Payments made = 33 Remaining payments = 3…
Q: You are the loan department supervisor for a bank. This installment loan is being paid off early,…
A: Amount financed = $1800 Number of payments = 18 Monthly payment = $125.89 Payment made = 13
Q: A bank pays 5% with daily compounding on its savings accounts. Should it advertisethe nominal or…
A: An interest rate is usually in two forms namely nominal interest rate and effective interest rate.…
Q: Assume a firm makes a $2,500 deposit into its money market account. If this account is currently…
A: Interpretation: Deposit amount = $2,500 Interest rate = 0.7% Number of years = 1
Q: How much do you have to deposit now in your savings account that earns a 6% annual interest if you…
A: Interest Rate = 6% p.a. Time Period = 5 years Cash Flows: Year Cash Flow 1 1000 2 1250 3…
Q: You are the loan department supervisor for a bank. This installment loan is being paid off early,…
A: Rebate: It means returning or giving relaxation on loan payments if the loan is paid off earlier.
Q: which of the following banks would you choose for a savings account based on the following rates…
A: Banks provide interest on deposited amount at fixed rate. Higher the rate, higher will be the…
Q: Your paycheck was just deposited and you noticed that had overdrawn your bank account 10 days ago.…
A: The actual cost of loan that is interest amount paid in a single year on the amount due is called as…
Q: If Greg borrOws $140.00 from the bank at 6.5%o exact simple interest, how much interest does Greg…
A: Interest = Principal * Rate * Time For exact simple interest use 365 days
Q: If you owe $5,000 on a credit card that charges 18.99% apr and you decide to put no more charges on…
A: Loans are paid by monthly payment that carry the payment of interest and payment of principal amount…
Q: You are the loan department supervisor for a bank. This installment loan is being paid off early,…
A: The rebate function is computed using the sum of digits formula, that is nn+12. The sum of digits of…
Q: You are the loan department supervisor for a bank. This installment loan is being paid off early,…
A: Amount financed = $1800 Number of payments = 18 Remaining payments = 18 - 14 = 4 Monthly payments =…
Q: You are the loan department supervisor for a bank. This installment loan is being paid off early,…
A: Your payback amount is the amount you will have to pay to meet the requirements of your mortgage…
Q: You are the loan department supervisor for a bank. This installment loan is being paid off early,…
A: Total Interest = Total Payment - Principal Amount Total Interest = ($166.33 x 36) - $4,600 Total…
Q: Suppose a credit card has an APR of 30.07% and changes its compounding period from monthly to daily.…
A: Effective interest rate is interest after considering the effect of compounding.
Q: You are the loan department supervisor for a bank. This installment loan is being paid off early,…
A: Amount financed = $4,700 Number of payments = 36 Monthly payment = $162.33 Payment made = 31
Q: choose
A: To calculate which account to be chosen, we can calculate the effective annual rate. Effective…
Q: If you deposited $18000 and the bank is paying 7% interest compounded monthly, how much would be…
A: Future Value = Present Value*(1+nominal rate/m)n*m m is number of times interest is compounded and…
Q: A man wants to recieve P800 immediately and pay it back in one year. The bank charges a simple…
A: Borrowings/Mortgage are the loan which is taken by the individual to meet its financial…
Q: Your bank account pays interest with an EAR of 4%. What is the APR quote for this account based on…
A: The annual interest rate that is charged by the lenders or at which the investors earn additional…
Q: How much do you have to deposit now in your savings account that earns a 6% annual interest you want…
A: Given Rate = 6%
Q: You are the loan department supervisor for a bank. This installment loan is being paid off early,…
A: Rebate fraction = No of payments remaining/Total no of payments Finance charge= Rebate fraction * […
Q: Suppose that you borrow a loan of amount P from a bank at the end of month 3 and make the monthly…
A: Compound Interest formula: A=P(1+rn)nt A = the future value of loan P = the principal amount r =…
Q: Bank A pays 4% interest compounded annually on deposits, while Bank B pays 3.5% compounded daily. a.…
A: Effective Annual Rate is the equivalent interest rate for nominal rate which is compounded multiple…
Q: A bank offers a Certificate of Deposit (CD) at a rate of 6% compounded monthly. Another bank offers…
A: Certificate of deposits(CDs) is a kind of debt instrument having a short-term to mid-term maturity…
Q: A bank offers 6.00% on savings accounts. What is the effective annual rate if interest is compounded…
A: The real interest that an investor earns on the investment and a borrower pays on loan after…
suppose that you overdrew your bank account by $200. the bank charge you a fee of $30 and your paycheck will be deposited in 5 to cover the overdraft. please calculate the period rate apr and aer that you pay for this overdrew
Step by step
Solved in 2 steps
- Suppose that you owe $2,000 on a credit card that charges 18% APR and you pay either the minimum 10% or $20, whichever is higher, every month. How long will it take you to eliminate the debt? Assume that the bank uses the previous-balance method to calculate your interest, meaning that the bank does not subtract the amount of your payment from the beginning balance but charges you interest on the previous balance.Suppose you owe $15,000 on a credit card that carries an APR of 24%. Because the balance is so high, you choose to stop charging and pay off the card. You can afford to make only the minimum monthly payment, which is 5% of the balance. Then your balance after t months is given by B = 15,000(1.02 ✕ 0.95)t dollars. How many payments will you have to make to get the balance below $200? (Enter the smallest such number of payments as an integer.)Your paycheck was just deposited and you noticed that had overdrawn your bank account 10 days ago. Your account was overdrawn by $121 and have been charged an overdraft fee of $34. What is the Effective Annual Rate?
- A man wants to recieve P800 immediately and pay it back in one year. The bank charges a simple discount of 6% payable at once. How much must be barrowed? What is the rate of interest?Suppose your credit card issuer states that it charges a 22.50% nominal annual rate, but you must make monthly payments, which amounts to monthly compounding. What is the effective annual rate? a. 24.23% b. 24.97% c. 22.50% d. 24.47% e. 23.77%Suppose that you borrow a loan of amount P from a bank at the end of month 3 and make the monthly deposits to the bank as in the cash flow diagram below. In the following cash flow diagram A7=A8=A9=1000, and starting with A10, deposits start decreasing in the amount of 40. However, due to a cash problem, you miss a payment at month 12 but continue with your original payment plan thereafter (that is, A10=960, A11=920, A12=0, A13=840 etc). With these payments, your dept to the bank will be 0 at the end of month 20. Assuming that the interest rate is 12% compounded monthly. 1-Find out the initial loan amount P. 2-Find the total interest paid to the bank
- Find the new balance, assuming that the bank charges 1 1/2 % per month on the unpaid balance. (Round your answer to the nearest cent.) PreviousBalance Payment NewPurchases $134.31 $45 $73.98 $Bank A pays 2% interest compoundedannually on deposits, while Bank B pays 1.75% compounded daily.a. Based on the EAR (or EFF%), which bank should you use?b. Could your choice of banks be influenced by the fact that you might want to withdraw 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.Suppose that on January 1 you have a balance of $3100 on a credit card whose APR is 17%, which you want to pay off in 1 year. Assume that you make no additional charges to the card after January 1 a. Calculate your monthly payments.b. When the card is paid off, how much will you have paid since January 1?c. What percentage of your total payment from part (b) is interest?
- Suppose you have a credit card with a balance of $3295.89 that charges 19.85% APR on unpaid balances. The minimum payment each month is $35. If you make just the minimum payment, how much interest will be added to your account balance?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.Would you rather have a savings account that pays 5% interest compounded semiannually or one that pays interest compounded daily? Show in excel to understand the calculation