Suppose you saw a sign at your local bank that​ said, ​"3.3​% rate compounded quarterly – 3.7​% Annual Percentage Yield​ (APY)." Is there anything wrong with the​ sign? Explain. Select the correct choice below​ and, if​ necessary, fill in the answer box to complete your choice.     A. Yes. The APY is incorrect. The correct APY is ------​%. ​(Round to the nearest hundredth as​ needed.)

Q: First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City…

A: Compound interest is the additional interest earned on the reinvested amount. It is interest on…

Q: Calculating the effective annual rate​) ​You've just received an offer from a bank for a credit card…

A: It can be calculated using following formula   Effective annual interest rate = (1 + (nominal rate /…

Q: (b) Once upon a time, a bank was advertising an interest rate for savings account of i% per year. A…

A: Information Provided: Interest rate = 6%   NOTE: As per our policy, we only answer one question…

Q: Molly Hamilton deposited $60,000 at Bank of America at 16% interest compounded quarterly. What is…

A: Given, Rate = 16% p.a. compounded quarterly Amount Deposited = $60000

Q: Friendly’s Quick Loans, Inc., offers you “three for four or I knock on your door.” This means you…

A: Part (a) Let R be the APR. Then weekly rate = R / 52(Assumption: There are 52 weeks in a year)PV =…

Q: Beginning three months from now, you want to be able to withdraw €1,200 each quarter from your bank…

A: Dear student we need to use pv function in excel to solve this problem. The present value so arrived…

Q: Ricky Ripov's Pawn Shop charges an interest rate of 15 percent per month on loans to its customers.…

A: Effective annual rate = (1 + r)n - 1 r = interest rate per month n = number of months

Q: Each column in the table below is labeled, complete the table by writing the given data (in…

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

Q: Suppose you saw a sign at your local bank that said, "4.3% rate compounded monthly- 4.7% Annual…

A: Effective Annual Rate is a modified rate of return where it considers the compounding effect.…

Q: A car dealer carries out the following calculations. What is the annual percentage rate?   Lis…

A: As per the given information: Amount to be financed - $4,691.03 Interest rate - 10% Months of…

Q: Bank A advertises a money market account that pays 3.5% compounded quarterly. Bank B advertises a…

A: Annual percentage of Yeild = [{(1+r)n} - 1] Where, r = Interest per period N = Number of periods…

Q: Two banks are offering different investment opportunities. Bank A offers an account that pays…

A: APY of Annual Percentage Yield is computed by taking into account the compounding effect of interest…

Q: You want to withdraw $1000 each month for the next 17 years from an account that earns 4.5% annual…

A: An annuity is a series of cash payments/ receipts occurring over a particular period at equal time…

Q: Suppose a person has a total credit card debt of $1.375 that has a 12% yearly interest rate. This…

A: Interest rate on savings provides the earnings to the investors while interest rate on credit card…

Q: how to use the excel function (IRR and Effect) to determine which money lender offers a better rate:…

A: Here,

Q: (a) Explain the differences between annual percentage rate (APR) and effective annual rate (EAR).

A: Introduction: Annual percentage rate can be defined as a periodic rate of interest on a loan is then…

Q: At the end of each month, for 24 months, $300 is put into an account paying 7 % annual interest…

A: The value of an asset at a future date is called future value. It is based on the growth rate as…

Q: Comparing Costs of Checking Accounts. What would be the net annual cost of the following checking…

A: Working note:

Q: Person A deposits $2750 in an account that pays 5% interest compounded once a year. Person B…

A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…

Q: You are shopping around to determine which bank account yields the highest return. You have three…

A: Future Value = Present Value x (1 + r)^n

Q: Person A deposits $2750 in an account that pays 5% interest compounded once a year. Person B…

A: Compounding is a way to compute to compute the FV of present amount by considering money’s time…

Q: You borrowed an X amount of money from a local bank to be repaid over N months at an interest rate i…

A: Let us assume that: X= Loan amount = $100,000 N= No. of months = 12 i= Interest rate = 6% p.a.…

Q: Helen Bowers, the new credit manager of the Muscarella Corporation, was alarmed to find that…

A: Note: Solution for all the parts of this question (from part 1 to 5) has been given in the following…

Q: Big Dom's Pawn Shop charges an interest rate of 25.5 percent per month on loans to its customers.…

A: Solution (A) APR is the interest rate per period times the number of periods in a year APR = 12…

Q: Spartan Credit Bank is offering 6.2 percent compounded daily on its savings accounts. You deposit…

A: Annual interest rate = 6.2% Number of compounding per year = 365 Deposit amount = $ 4600

Q: Helen Bowers, the new credit manager of the Muscarella Corporation, was alarmed to find that…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: First City Bank pays 8 per cent simple interest on its savings account balances, whereas Second City…

A: Future value (FV) is the value of a current asset at a future date

Q: e the following information from an account analysis statement to answer the following questions: •…

A: The practice of ensuring that consumers pay their bills on time is known as accounts receivable…

Q: You recently received a letter from Chase National Bank that offers you a new credit card that has…

A: The APR(annual percentage rate) of 20% is the general quote made for credit card but because…

Q: La Resolana, S.A., has credit sales of $180,000 per year, with net payment terms of 30 days, which…

A: Accounts receivables are the current assets of the company which arises due to sale made on credit…

Q: A department store has it’s own credit card facilities, for which it charges interest at a rate of…

A: Internal rate of return would be considered as the rate at which net present value of the project is…

Q: nvestment promises to pay into an account that pays you 6 percent annually, $150 per month for the…

A: because you have posted multiple questions, we will answer the first question only, for the…

Q: Solve for the (1) in the blank Assume that you save 22,000USD to keep on the 1st day of every month…

A: Simple interest can be defined as the amount of interest to be computed on the original contribution…

Q: What is the balance after 1 year in an account containing $1100 that earns a yearly nominal interest…

A: Given information: Initial amount is $1,100 Nominal interest is 9% Number of years is 1

Q: ome time ago, you put £500 into a bank account for a “rainy day.” Since then, the bank has been…

A: Compound Interest is calculated by multiplying the initial principal amount by one plus the annual…

Q: What would be the net annual cost of the following checking accounts? a. Monthly fee, $2.75;…

A: Calculation of net annual cost for both case are as follows.

Q: nider Industries sells on terms of 2/10, net 25. Total sales for the year are $600,000. Thirty…

A: Days Sales Outstanding means the number of days taken by the firm to collect the payment from their…

Q: Answer the questions below and show all working from a financial calculator. Do not use excel: 1.…

A: The question is based on the concept of  Annuity

Q: nider Industries sells on terms of 2/10, net 35. Total sales for the year are $600,000. Thirty…

A: Days sales outstanding means the average number of days , a customer take , to make payment. This…

Q: Your office supply has a line of credit that charges an annual percentage rate of prime rate plus…

A: Given information: Balance of office supply line of credit on different dates of March. Annual…

Q: Handley Bank advertises that its standard lending rate is 12% per annum compounding monthly. Which…

A: The effective rate is the actual rate that we get if we take the frequency of compounding into…

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: Let y be the balance in an account if you deposit $5000 for x years at 4% APR compounded monthly.…

A: APY is the annual yield or the interest rate which has been compounded annually.

Q: Lupo, Inc., has an average collection period of 52 days. Its average daily investment in receivables…

A: a) Given,  Average collection period = 52 days Average collection period = 365/ Receivables turnover…

Q: Suppose you have a revolving credit account at an annual percentage rate of 12%, and your previous…

A: Cash and cash equivalents mean the cash or the assets which can be converted into cash within a very…

Q: Friendly's Quick Loans, Inc., offers you $8.50 today but you must repay $10.75 when you get your…

A: Given: Current value is $8.50 Future value is $10.75

Q: Which one of the following bank accounts will you choose for a savings account? Bank A: An account…

A: When choosing a bank account for savings we choose the bank that offers highest EFF.  EFF = (1 +…

Motor Vehicle Insurance

Motor vehicle insurance is a contract between the insurance company that provides insurance cover and the person who owns the vehicle. According to the terms and conditions of the insurance contract, the insurance company reimburses the policyholder for losses and damages. This insurance policy covers the financial risks of the motor vehicle owner. Electronic vehicles are also covered in a vehicle insurance policy, but the insurance rate is relatively higher than other motor vehicle insurance. Motor vehicle insurance is otherwise called an automotive insurance policy.