The effective interest rate on a mortgage with monthly payments is 9.38%. What is the monthly interest rate on the mortgage? What is the nominal interest rate?
Q: The effective interest rate can be calculated using the relationship between nominal rate and…
A: Effective Interest Rate The effective interest rate can be explained as the rate that takes into…
Q: What is a simple interest rate?
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A: Inflation rate helps in determining the percentage of increase in prices of goods and services.
Q: What is the real interest rate?
A: Real interest rate is an interest rate which removes the effect of inflation and reflects the real…
Q: If you are a banker, should you consider the nominal or real interest rate when deciding which rate…
A: Nominal Interest rates : It refers to that cost of capital which a borrower has to pay and a lender…
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A: Given: I=$66 r=6% t=6 months To find - P=?
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A: Inflation rate is the rate at which the prices of goods and services in an economy rise over time.…
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A: Interest rate is the interest charged to the borrower by the person who makes the loan, calculated…
Q: What is the Nominal interest?
A: The percentage of the principal amount that charged by a lender to a borrower is referred to as…
Q: What is the nominal interest rate?
A: The nominal interest rate is an interest rate which does not take inflation into the account and is…
Q: For a simple interest loan with interest rater (expressed as a decimal), the amount A due at the end…
A: Under simple interest, compounding is done on a fixed principal.
Q: What are Nominal Interest Rates?
A: Inflation refers to a continuous increase in the price of any commodity and service in the economy…
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A: The real interest rate basically is the interest rate that has been adjusted after taking into…
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A: Dear student, you have asked multiple sub-part questions in a single post. In such a case, I will be…
Q: If P1,000 becomes P6,343 after 13 years when invested, what is the nominal interest rate
A: Given Present value P=1000 Future value F= 6343 number of years =13 We have to calculate the…
Q: Explain the concept: nominal interest rate
A: Interest rate is the a prescribed percentage that is supposed to be paid by the borrower to the…
Q: What does the statement “interest rate 10%” signify? a The rate is effective per year. b The…
A: Effective Interest rate:- Effective interest rate can be explained as the actual return on the…
Q: Greg wants to have $50 000 in five years. He has $20 000 today to invest. The bank is offering five-…
A: Given Greg wants to have $50,000 in five years. Principal amount = $20,000 Interest rate…
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A: SI=P*R*T/100 where, P-Principal R-rate of interest T-time
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A: Nominal interest rate minus inflation rate is the real interest rate. Nominal interest rate is 8%…
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A: PV=FV1+rt where PV= Present Value FV= Future Value r=interest rate t= time period
Q: What is a monotonically decreasing function of interest rate?
A: Monotonic functions are always Increasing or decreasing in nature, It means the value of function…
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A: Simple Interest refers to the money that is paid only on principal, or the money which is invested…
Q: Real interest rate is always higher than nominal interest rate True/False
A: # The difference between Nominal interest rate and inflation rate is given as real interest rate
Q: What is the U.S 6 month interest rate?
A: In the mentioned question we have been asked about the 6-month interest rate of the U.S.
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A: The formula for Simple Interest is S.I = P x r x t where P is the amount of loan r is the interest…
Q: The general case of interest rate is simple interest rate. Select one: True False
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Q: Waleed is lending Emad $1,000 for one year. The CPI is 1.40 at the time the loan is made. They…
A: Given, Lent money = $1000 CPI at the time of loan = 1.40 Expected CPI = 1.54 Real interest rate…
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Q: What is the relationship between nominal and effective interest rates?
A: The interest rates refer to the rate at which the loans are given by the banks, or other lending…
Q: What is meant by Prime interest rate?
A: Prime Interest Rate is the interest rate which is determined by the federal funds rate.
The effective interest rate on a mortgage with monthly payments is 9.38%. What is the monthly interest rate on the mortgage? What is the nominal interest rate?
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- WHAT IS THE DIFFERENCE BETWEEN NOMINAL INTEREST AND REAL INTERESTToni received a loan of $200,000 at 10% interest. The interest was deducted from the loan at the time the money was borrowed. If, at the end of one year, Toni has to pay the full amount of $200,000, what is the actual rate of interest?The rate of interest written on a contract between a borrower and a lender is the a. expected interest rate. b. implied interest rate. c. real interest rate. d. nominal interest rate
- Find the real interest rate prevailing if inflation is 2% and Nominal Interest rate is 3 times the inflation rateWhat are the benefits of inflation indexation in fixed income products? Why is it important for retirees? What is the cost for having inflation indexation as a product feature?What is the Nominal interest?
- The CPI is 120 in year 1 and 150 in year 2. All inflation is anticipated. If Sonali Bank charges a nominal interest rate of 30 percent in year 2, what is the bank’s real interest rate?The nominal interest rate is: A not adjusted by inflation. B less than the real rate of interest when there is inflation. C inflation. adjusted D the real rate of interest when there is inflation.You are given a loan with a nominal interest rate of 5%. You must pay back this loan one year from now. Over the next year inflation is at 4%. In real terms what is the effective interest rate you must pay the loan back at after adjusting for inflation?