Question

QUESTIONS What is the NPRO 30 6 percent 21.20 percent 25 63 percent 1793 percent 3333 percent PERSTIMATETIETEELLLLLLLLLL QUESTION 6 in a bank account that a percent simple How the y Today you deposit 59000 312000 145000 148359 QUESTION What we can b 100 percent 10 percent

Answer 1

	Question No 5 :- Calculation of APR ( annual percentage rate)
	Answer :-	The last option is the correct answer (i.e. 33.33%)
	Future value=Present value*(1+APR)^ year
	$ 2000=	$ 1500(1+APR)
	(1+APR)=	=2,000/1,500
	(1+APR)=	1.33
	APR=	=1.33-1
	APR=	33.33%
	Question No 6 :- calculation of simple interest earned for 5 years
	Answer :-	The third option is the correct answer (i.e. $ 450)
	Simple interest= Principle amount* interest rate* no of years
	Simple interest=	$ 2500*3.6%*5 Years
	Simple interest ($) =	450.00
	Question No 7 :- calculation of effective annual rate
	Answer:-	11.02%
	Effective annual rate=	(1+(Interest rate/No of compounding period))^ no of compounding period-1
	Effective annual rate=	=(1+(10.5%/12))^12-1
	Effective annual rate=	11.020%