Homework Answers
2)
Annual percentage rate (APR):
= Interest rate per month×Number of months
= 1.3%×12
= 15.6%
Hence, APR is 15.6%
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Please answer question 2, 3 and 4.
2. If your credit card chrries a rate of...
Please answer 4. You invest in a 30-year US Treasury bond that pays interest of 2.8%...
Please answer
4. You invest in a 30-year US Treasury bond that pays interest of 2.8% per year. If inflation is 2.0% per year, what is: a. The exact, real interest rate (Your answer should be a % carried to 3 places), and b. The approximate real interest rate? (Answer is a % carried to 1 place)
show all wokring 4. You have a credit card account that charges interest at the rate...
show all wokring
4. You have a credit card account that charges interest at the rate of 1.45% per month a. What is APR? EAR? b. In this month's statement, you found out that your credit card company changed its policy. It now charges interest at the rate of 0.0475% per day and claims that it provides better rate than before, since its new APR is lower than previous APR. Do you agree? Are you better or worse off? Show...
What is the EAR (effective annual rate) of a credit card that has a stated rate...
What is the EAR (effective annual rate) of a credit card that has a stated rate of 14.9%? The credit card compounds interest monthly. Record your answer as a decimal, so if the answer is 16.32% record the answer as 0.1632.
Need asap please! Suppose the real interest rate is 2.8%, and the inflation rate is 7%....
Need asap please!
Suppose the real interest rate is 2.8%, and the inflation rate is 7%. (1) How much do you need to invest now in order to get $100 in a year? Please show two approaches to calculate the answers. (Round your final answer to two decimal places) (2) Suppose the U.S. Treasury issues 5% coupon, 3-year TIPS (Treasury Inflation-Protected Securities). What are the real cash flows on the 3-year TIPS each year? What are the nominal cash flows...
Instrucciones de Blog A Instructions: Students should answer the following questions: 1. If your credit card...
Instrucciones de Blog A Instructions: Students should answer the following questions: 1. If your credit card calculates the interest based on 12.5% APR, what is your monthly interest rate and annual effective interest rate, respectively? 2. Suppose your savings account pays 9% interest compounded quarterly. If you deposit $10,000 for one year, how much would you have?
suppose you have accumulated $22,000 in credit card debt. If the interest rate on the credit...
suppose you have accumulated $22,000 in credit card debt. If the interest rate on the credit card is 22.3% APR compounded monthly, how many years will it take you to pay off this debt if you pay $500 per month? (Answer to the nearest tenth of a year)
Suppose the real interest rate is 2.8%, and the inflation rate is 7%. (1) How much...
Suppose the real interest rate is 2.8%, and the inflation rate is 7%. (1) How much do you need to invest now in order to get $100 in a year? Please show two approaches to calculate the answers. (Round your final answer to two decimal places) (2) Suppose the U.S. Treasury issues 5% coupon, 3-year TIPS (Treasury Inflation-Protected Securities). What are the real cash flows on the 3-year TIPS each year? What are the nominal cash flows on the 3-years...
Suppose the real interest rate is 2.8%, and the inflation rate is 7%. (1) How much...
Suppose the real interest rate is 2.8%, and the inflation rate is 7%. (1) How much do you need to invest now in order to get $100 in a year? Please show two approaches to calculate the answers. (Round your final answer to two decimal places) (2) Suppose the U.S. Treasury issues 5% coupon, 3-year TIPS (Treasury Inflation-Protected Securities). What are the real cash flows on the 3-year TIPS each year? What are the nominal cash flows on the 3-years...
Suppose the real interest rate is 2.8%, and the inflation rate is 7%. (1) How much...
Suppose the real interest rate is 2.8%, and the inflation rate is 7%. (1) How much do you need to invest now in order to get $100 in a year? Please show two approaches to calculate the answers. (Round your final answer to two decimal places) (2) Suppose the U.S. Treasury issues 5% coupon, 3-year TIPS (Treasury Inflation-Protected Securities). What are the real cash flows on the 3-year TIPS each year? What are the nominal cash flows on the 3-years...
Suppose the real interest rate is 2.8%, and the inflation rate is 7%. (1) How much...
Suppose the real interest rate is 2.8%, and the inflation rate is 7%. (1) How much do you need to invest now in order to get $100 in a year? Please show two approaches to calculate the answers. (Round your final answer to two decimal places) (2) Suppose the U.S. Treasury issues 5% coupon, 3-year TIPS (Treasury Inflation-Protected Securities). What are the real cash flows on the 3-year TIPS each year? What are the nominal cash flows on the 3-years...
Please answer
4. You invest in a 30-year US Treasury bond that pays interest of 2.8% per year. If inflation is 2.0% per year, what is: a. The exact, real interest rate (Your answer should be a % carried to 3 places), and b. The approximate real interest rate? (Answer is a % carried to 1 place)
show all wokring
4. You have a credit card account that charges interest at the rate of 1.45% per month a. What is APR? EAR? b. In this month's statement, you found out that your credit card company changed its policy. It now charges interest at the rate of 0.0475% per day and claims that it provides better rate than before, since its new APR is lower than previous APR. Do you agree? Are you better or worse off? Show...
Need asap please!
Suppose the real interest rate is 2.8%, and the inflation rate is 7%. (1) How much do you need to invest now in order to get $100 in a year? Please show two approaches to calculate the answers. (Round your final answer to two decimal places) (2) Suppose the U.S. Treasury issues 5% coupon, 3-year TIPS (Treasury Inflation-Protected Securities). What are the real cash flows on the 3-year TIPS each year? What are the nominal cash flows...
Instrucciones de Blog A Instructions: Students should answer the following questions: 1. If your credit card calculates the interest based on 12.5% APR, what is your monthly interest rate and annual effective interest rate, respectively? 2. Suppose your savings account pays 9% interest compounded quarterly. If you deposit $10,000 for one year, how much would you have?
Suppose the real interest rate is 2.8%, and the inflation rate is 7%. (1) How much do you need to invest now in order to get $100 in a year? Please show two approaches to calculate the answers. (Round your final answer to two decimal places) (2) Suppose the U.S. Treasury issues 5% coupon, 3-year TIPS (Treasury Inflation-Protected Securities). What are the real cash flows on the 3-year TIPS each year? What are the nominal cash flows on the 3-years...
Suppose the real interest rate is 2.8%, and the inflation rate is 7%. (1) How much do you need to invest now in order to get $100 in a year? Please show two approaches to calculate the answers. (Round your final answer to two decimal places) (2) Suppose the U.S. Treasury issues 5% coupon, 3-year TIPS (Treasury Inflation-Protected Securities). What are the real cash flows on the 3-year TIPS each year? What are the nominal cash flows on the 3-years...
Suppose the real interest rate is 2.8%, and the inflation rate is 7%. (1) How much do you need to invest now in order to get $100 in a year? Please show two approaches to calculate the answers. (Round your final answer to two decimal places) (2) Suppose the U.S. Treasury issues 5% coupon, 3-year TIPS (Treasury Inflation-Protected Securities). What are the real cash flows on the 3-year TIPS each year? What are the nominal cash flows on the 3-years...
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