Suppose a savings and loan pays a nominal rate of 4.5% on savings deposits. Find the...
Suppose a savings and loan pays a nominal rate of 4.5% on savings deposits. Find the effective annual yield if interest is compounded 10,000 times per year.
The effective annual yield is %.
Type an integer or a decimal rounded to the nearest thousandth as needed.)
Homework Answers
Ans 4.603%
| EAR = | ( 1 + r )^n - 1 |
| Compounded 10,000 times per year | |
| EAR= | ( 1 + 4.5%/10000)^10000 - 1 |
| EAR= | 4.603% |
Add Answer to:
Suppose a savings and loan pays a nominal rate of 4.5% on
savings deposits. Find the...
interest is compounded 10.000 times per yea Suppose a savings and loan pays a nominal role...
interest is compounded 10.000 times per yea Suppose a savings and loan pays a nominal role of 3% on savings deposits. Find the effective annual The effective annual yield is Type an integer or a decimal rounded to the nearest thousandth as needed) Complete the first two months of an amortization schedule for the fixed-rate mortgage Mortgage: Interest rate: Term of loan: $118,250 3.75% 17 years Complete the first two payments of the amortization schedule below. (Do not round until...
Suppose a savings and loan pays a nominal rate of 3.2% on savings deposits. Find the...
Suppose a savings and loan pays a nominal rate of 3.2% on savings deposits. Find the effective annual yield if interest is compounded annually.
Suppose a savings and loan pays a nominal rate of 3.9% on savings deposits. Find the...
Suppose a savings and loan pays a nominal rate of 3.9% on savings deposits. Find the effective annual yield if interest is compounded quarterly.
You are making $500 monthly deposits into a savings account that pays interest at a nominal...
You are making $500 monthly deposits into a savings account that pays interest at a nominal rate of 6% per year, compounded monthly. What is the future equivalent value of this account after six years? The future equivalent value of this account after six years is $0 (Round to the nearest dollar.)
8. Juan deposits $4,300 into a savings account that pays 6.9% per year, continuously compounded. What...
8. Juan deposits $4,300 into a savings account that pays 6.9% per year, continuously compounded. What is the effective annual interest rate? Determine the value of his account at the end of four years. The effective annual interest rate is %. (Round to two decimal places.) The value of this account at the end of four years is $ (Round to the nearest dollar.)
A certain savings and loan company advertises that is pays 6% nominal interest, compounded quarterly. What...
A certain savings and loan company advertises that is pays 6% nominal interest, compounded quarterly. What is the effective interest rate per annum? If you deposit $6000 now and plan to withdraw it in five years, how much would the account be worth at that time? (Hint: to find the effective interest rate, use the formula: (1 + r/M)M-1.)
3) Effective versus nominal interest rates. Bank A pays 4% interest compounded annually on deposits, Bank...
3) Effective versus nominal interest rates. Bank A pays 4% interest compounded annually on deposits, Bank B pays 3.75% compounded semiannually, and Bank C pays 3.5% compounded daily. a) Which bank would you use? Why? b) If you deposited $5,000 in each bank today, how much would you have at the end of 2 years? c) What nominal rate would cause Banks B and C to provide the same effective annual rate as Bank A? d) Suppose you do not...
You plan to apply for a loan from Bank of America. The nominal annual interest rate...
You plan to apply for a loan from Bank of America. The nominal annual interest rate for this loan is 13.30 percent, compounded daily (with a 365-day year). What is the effective annual rate, or EAR (annual percentage yield), of this loan? Round the answer to two decimal places in percentage form.
You plan to apply for a loan from Bank of America. The nominal annual interest rate...
You plan to apply for a loan from Bank of America. The nominal annual interest rate for this loan is 18.85 percent, compounded daily (with a 365-day year). What is the effective annual rate, or EAR (annual percentage yield), of this loan? Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)
Find i (the rate per period) and n (the number of periods) for the following loan...
Find i (the rate per period) and n (the number of periods) for the following loan at the given annual rate. Semiannual payments of $5,000 are made for 12 years to repay a loan at 6.15% compounded semiannually. il (Type an integer or decimal rounded to four decimal places as needed.) n=0
interest is compounded 10.000 times per yea Suppose a savings and loan pays a nominal role of 3% on savings deposits. Find the effective annual The effective annual yield is Type an integer or a decimal rounded to the nearest thousandth as needed) Complete the first two months of an amortization schedule for the fixed-rate mortgage Mortgage: Interest rate: Term of loan: $118,250 3.75% 17 years Complete the first two payments of the amortization schedule below. (Do not round until...
You are making $500 monthly deposits into a savings account that pays interest at a nominal rate of 6% per year, compounded monthly. What is the future equivalent value of this account after six years? The future equivalent value of this account after six years is $0 (Round to the nearest dollar.)
8. Juan deposits $4,300 into a savings account that pays 6.9% per year, continuously compounded. What is the effective annual interest rate? Determine the value of his account at the end of four years. The effective annual interest rate is %. (Round to two decimal places.) The value of this account at the end of four years is $ (Round to the nearest dollar.)
3) Effective versus nominal interest rates. Bank A pays 4% interest compounded annually on deposits, Bank B pays 3.75% compounded semiannually, and Bank C pays 3.5% compounded daily. a) Which bank would you use? Why? b) If you deposited $5,000 in each bank today, how much would you have at the end of 2 years? c) What nominal rate would cause Banks B and C to provide the same effective annual rate as Bank A? d) Suppose you do not...
You plan to apply for a loan from Bank of America. The nominal annual interest rate for this loan is 18.85 percent, compounded daily (with a 365-day year). What is the effective annual rate, or EAR (annual percentage yield), of this loan? Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)
Find i (the rate per period) and n (the number of periods) for the following loan at the given annual rate. Semiannual payments of $5,000 are made for 12 years to repay a loan at 6.15% compounded semiannually. il (Type an integer or decimal rounded to four decimal places as needed.) n=0
Most questions answered within 3 hours.
-
Problem 2: The Problem of Social Cost. A Rancher and Farmer live
side-by-side to each other....
asked 1 minute from now -
Define Diet counceling? What are the
responsibilities of a counselor?
asked 1 hour ago -
Hey im just confused about how to put the ' A angle n' and ' S...
asked 1 hour ago -
A short essay about the WSJ article on Oreo versus Hydrox.
asked 1 hour ago -
##8. A program contains the following function definition:
##def cube(num):
##return num * num * num...
asked 1 hour ago -
find the value z of a standard Normal variable that satisfies
each of the given conditions....
asked 2 hours ago -
"banana".find('z')
Out[22]: -1
why is this -1
python 3.7
asked 1 hour ago -
Ilegal Consideration Marna Balin was involved in two automobile
accidents in which she suffered severe injures.She...
asked 1 hour ago -
Walk through the operation of QuickSort when n = 7 and the input
array is A...
asked 1 hour ago -
Answer with True or False. Argue the answers
7) The circulation of field B on any...
asked 1 hour ago -
Chase Co. uses the perpetual inventory method. The inventory
records for Chase reflected the following
Jan...
asked 1 hour ago -
what are is the correct compression for these two ipv6 ips.. i
keep getting them wrong...
asked 1 hour ago