Which of the following bank accounts has the highest effective annual return? An account that pays 8% nominal interest with daily (365-day) compounding. An account that pays 8% nominal interest with monthly compounding. An account that pays 8% nominal interest with annual compounding. An account that pays 7% nominal interest with daily (365-day) compounding. An account that pays 7% nominal interest with monthly compounding.
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- Ancient Grains Unlimited has an accounts receivable turnover ratio of 3.34 times. The net credit sales for the year are $567,920. What is the days sales in receivables ratio for 2018 (rounded to the nearest whole number)? A. 190 days B. 109 days C. 110 days D. 101 daysWhich of the following bank accounts has the lowest effective annual return? a. An account that pays 7% nominal interest with daily (365-day) compounding. b. An account that pays 7% nominal interest with monthly compounding. c. An account that pays 8% nominal interest with daily (365-day) compounding. d. An account that pays 8% nominal interest with annual compounding. e. An account that pays 8% nominal interest with monthly compounding.Which of the following bank accounts has the lowest effective annual return? Group of answer choices 1. An account that pays 8% nominal interest with monthly compounding. 2. An account that pays 8% nominal interest with daily (365-day) compounding. 3. An account that pays 7% nominal interest with monthly compounding. 4. An account that pays 8% nominal interest with annual compounding. 5. An account that pays 7% nominal interest with daily (365-day) compounding.
- A bank features a savings account that has an annual percentage rate of r=3.1r=3.1% with interest compounded quarterly. Breanna deposits $6,500 into the account. The account balance can be modeled by the exponential formula S(t)=P(1+rn)ntS(t)=P(1+rn)nt, where SS is the future value, PP is the present value, rr is the annual percentage rate written as a decimal, nn is the number of times each year that the interest is compounded, and tt is the time in years. (A) What values should be used for PP, r, and nn? P=P= , r=r= , n=n= (B) How much money will Breanna have in the account in 88 years? Answer = $ . Round answer to the nearest penny.. If a bank advertises a savings account that paysan 8% nominal interest rate compounded continuously, what is the effective annual percentage rateThe nominal interest rates for Zenith and HFC banks are quoted as follows: - Zenith bank pays interest rate at a savings account of 11.72% compounded semi-annually. - HFC bank pays 11.50% on a savings account compounded monthly. Which bank pays its sellers the most interest rate
- A bank features a savings account that has an annual percentage rate of r=3.4% with interest compounded weekly. Alfonso deposits $11,500 into the account. The account balance can be modeled by the exponential formula S(t)=P(1+r/n)^nt, where S is the future value, P is the present value, rr is the annual percentage rate, nn is the number of times each year that the interest is compounded, and tt is the time in years. What values should be used for P, r, and n?P= , r= , n= How much money will Alfonso have in the account in 10 years?Answer = $ .Round answer to the nearest penny. What is the effective annual rate for the savings account?effective rate = %.Round answer to 3 decimal places.Your bank account pays an 8% nominal rate of interest. The interest is compounded quarterly. Which of the following statements is CORRECT? a. The periodic rate of interest is 4% and the effective rate of interest is less than 8%. b. The periodic rate of interest is 8% and the effective rate of interest is also 8%. c. The periodic rate of interest is 8% and the effective rate of interest is greater than 8%. d. The periodic rate of interest is 2% and the effective rate of interest is greater than 8%. e. The periodic rate of interest is 2% and the effective rate of interest is 4%.If a bank compounds savings accounts quarterly, the effective annual rate (EAR) will be greater than the annual percentage rate (APR) True False
- Bank of America quotes a rate of 11.5% with monthly compounding for a consumer loan, while Wells Fargo quotes you 12% with annual compounding.a. What is the EAR for Bank of America? b.The Tropical State Bank has $1,000 in total assets (all of which are earning assets), $700 of which will be repriced within the next 90 days. This bank also has $800 in total liabilities, $400 of which will be repriced within the next 90 days. Currently, the bank is earning 8 percent on its assets and is paying 5 percent on its liabilities. If interest rates do not change in the next 90 days, what is this bank's net interest margin? 8 percent 5 percent 4 percent 4 percent The Tropical State Bank has $1,000 in total assets (all of which are earning assets), $700 of which will be repriced within the next 90 days. This bank also has $800 in total liabilities, $400 of which will be repriced within the next 90 days. Currently, the bank is earning 8 percent on its assets and is paying 5 percent on its liabilities. If interest rates on both assets and liabilities rise by 2 percent in the next 90 days, what would be the bank's net interest margin? 4 percent 4 percent 6 percent 4 percent…If a bank compounds savings accounts monthly, the effective annual rate is greater than the nominal rate Group of answer choices True False