Homework Answers
Answer:
Compounding means charging interest over interest. Means the interest charged till now will become principal for calculation added with the already existing principle for next period. Which means the more frequently interest is compounded the more amount of loan you have to pay. Hence answer is (c). First united bank is better one to take loan from because its compounding Quarterly in a financial year, which will obviously be less than other bank which is compounding daily.
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Question 11 (1 point) First National Bank charges 4.4% compounded daily on its business loans. First...
3) First National Bank charges 12.4% compounded monthly on its business loans. First United Bank charges...
3) First National Bank charges 12.4% compounded monthly on its business loans. First United Bank charges 12.7% compounded semiannually. Find the EAR on both business loans. As a potential borrower, which bank would you go for a new loan?
First National Bank charges 13.9 percent compounded monthly on its business loans. First United Bank charges...
First National Bank charges 13.9 percent compounded monthly on its business loans. First United Bank charges 14.2 percent compounded semiannually. Calculate the EAR for First National Bank and First United Bank. (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) EAR First National % First United % As a potential borrower, which bank would you go to for a new loan? First United bank or First National bank ?
1. First National Bank charges 11.11 % compounded monthly on its business loans. First United Bank...
1. First National Bank charges 11.11 % compounded monthly on its business loans. First United Bank charges 11.81%, compounded semiannually. Calculate the EAR for First United Bank. 2. One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $559 per month. You will charge 1.29 % per month interest on the overdue balance. If the current balance is $13709, how many years will it take for the account to be paid...
First National Bank charges 11.13 % compounded monthly on its business loans. First United Bank charges...
First National Bank charges 11.13 % compounded monthly on its business loans. First United Bank charges 11.83%, compounded semiannually. Calculate the EAR for First National Bank.
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First National Bank charges 13.1 percent compounded monthly on its business loans. First United Bank charges 13.4 percent compounded semiannually. As a potential borrower, which bank would you go to for a new loan?
First National Bank charges 10.9% compounded monthly on its business loans.First United Bank charges 11.1 percent...
First National Bank charges 10.9% compounded monthly on its business loans.First United Bank charges 11.1 percent compounded semi-annually. Calculate the EAR for each bank. Please show all answers and calculations.
1. My credit card charges interest of 0.04% per day compounded daily. (a) What is the...
1. My credit card charges interest of 0.04% per day compounded daily. (a) What is the APR for this credit card? (b) What is the APY? Assume 360 days in a year (twelve 30-day months). 2. A local credit union is advertising a car loan with an APR of 6.75%. If interest is compounded monthly, (a) what is the interest rate per compounding period, and (b) what is the effective annual interest rate (i.e., the APY)? 3. Your local credit...
entered as formula in spreadsheet Callbl " E- Cells Editing Paste B I U- - A...
entered as formula in spreadsheet
Callbl " E- Cells Editing Paste B I U- - A A DE - AAlignment Number Conditional Format as Cell Formatting Table Styles Styles Clipboard Font A1 F ДА В G H First National Bank charges 12.4 percent compounded monthly on its business loans. First United Bank charges 12.7 percent compounded semiannually. As a potential borrower, which bank would you go to for a new loan? Complete the following analysis. Do not hard code values...
1 IJA bank currently charges 10% interest compounded annually on business loans. If the bank were...
1 IJA bank currently charges 10% interest compounded annually on business loans. If the bank were to charge continuous compounding, what would be the annual effective interest rate? a)10% b.) 10.517% c.) 12.5% d.) 12.649% e.) infinite 3.) How large a contribution is required to endow perpetually a research laboratory which requires $50,000 for original construction, $20,000/yr operating expenses and $10,000 every three years for new and replacement equipment? Interest is 4%. a.) $70,000 b.) $640,000 c.) $790,000 d.)$1,000,000 e.)...
First National Bank offers two-year CDs at 9.15% compounded daily, and citywide savings offers two-year CDs...
First National Bank offers two-year CDs at 9.15% compounded daily, and citywide savings offers two-year CDs at 9.16% compounded quarterly. Compute the annual yield for each institution. (Round your answer to two decimal places.)
entered as formula in spreadsheet
Callbl " E- Cells Editing Paste B I U- - A A DE - AAlignment Number Conditional Format as Cell Formatting Table Styles Styles Clipboard Font A1 F ДА В G H First National Bank charges 12.4 percent compounded monthly on its business loans. First United Bank charges 12.7 percent compounded semiannually. As a potential borrower, which bank would you go to for a new loan? Complete the following analysis. Do not hard code values...
1 IJA bank currently charges 10% interest compounded annually on business loans. If the bank were to charge continuous compounding, what would be the annual effective interest rate? a)10% b.) 10.517% c.) 12.5% d.) 12.649% e.) infinite 3.) How large a contribution is required to endow perpetually a research laboratory which requires $50,000 for original construction, $20,000/yr operating expenses and $10,000 every three years for new and replacement equipment? Interest is 4%. a.) $70,000 b.) $640,000 c.) $790,000 d.)$1,000,000 e.)...
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