Page 4 of 10 Question 4 (1 poirtb) A bank CD would give you 3.55% APR...
ework #01 h: Next Page Page 10 of 10 Question 10 (1 point) (This question will require some thinking- we haven't learned how to solve this type of questions and it's hard to conceptualize the situation. You might want to tackle this question the last.) The nominal rate (APR) for a particular financial product is 7.85%, with continuous compounding, meaning that compounding never stops and the number of total compoundings is infinite in a year! what's the EFF% of this...
A bank CD would give you 4.02% APR with quarterly compounding. What’s the quarterly interest rate for this CD? (Keep percentages with two decimals)
A bank CD would give you 3.68 APR with semi-annual compounding what’s the interest rate per compounding period for this CD?
A bank CD would give you 3.19% APR with monthly compounding what’s the interest rate compounding period for this CD
You deposit $9,821 in a CD with First Bank of Terlingua. The bank promises a fixed APR of 6.189% per year with monthly compounding. The CD has a life of 8 years. The interest is paid at the end of each month. Underlying assumptions: You leave the principal and interest in the account for the life of the CD rather than withdrawing it. • The bank stays solvent for this period (and thus can keep its promise to pay you)....
Problem #4: (a) You put $200 in a bank today, and the bank says that you will get $300 in four years. What is the implied interest rate per year? (b) You invest $560 in an asset that promises to pay an interest rate of 6% annually. How long will it take for your investment to grow to $1400? (c) If the stated APR is 12%, then what is the EAR with daily compounding? (d) What APR, compounded weekly, would...
Question 10 You are looking to invest $15,000 in a bank CD. Which one will have the highest future value if you plan to invest for 5 years? 3.5% compounded daily 1 3.75% compounded annually (2 3.25% compounded monthly (3) 3% compounded quarterly 4
4. This question consists of four main parts. When performing the calculations, keep as many decimal places as you can for intermediate answers, but round your final answers to two decimal places. (13 marks total) If you save $200 per month for 10 years at 12% annual percentage rate with monthly compounding, what is the future value annuity factor? (1 mark) what is the future value? (1 mark) Suppose that you have a choice between receiving $10,000 now...
Previous Page Next Page Page 4 of 30 Question 4 (3.3 points) Which of the following statements is most correct? The first payment under a 3-year, annual payment, amortized loan for $1,000 will include a smaller percentage (or fraction) of interest if the interest rate is 5 percent than if it is 10 percent. If you are lending money, then, based on effective interest rates, you should prefer to lend at a 10 percent nominal, or quoted, rate but with...
10. Suppose on January 1 you deposit $200 in an account that pays a quoted interest rate of 11.33% (APR), with interest added (compounded) daily. How much will you have in your account on October 1, or after 9 months? (assume N = 273 days) Recall that the interest rate (l/Y) represents the periodic rate based on how many times per YEAR the interest is compounded. Hint, this is 365 times per year.