Homework Answers
Effective rate of interest for the certificate:
= The effective annual interest rate is equal to 1 plus the nominal interest rate in percent divided by the number of compounding persiods per year n, to the power of n, minus 1
= 5.3782%
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Question 5 1 po ESOURCES Premier Federal Credit Union is offering a 3-year certificate of deposit...
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5. Suppose a CD (Certificate of Deposit) advertised an APR of 8%. Assuming the APR was the result of monthly compounding, find the effective annual yield to the nearest tenth of a percent. 8. The going rate for a home mortgage with a term of 30 years is 3.8%. The lending agency says that based on your income, your monthly payment could be $900. How much can you borrow? 9. Suppose you invest $5,000 in a savings account that pays...
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3. Nonannual compounding period The number of compounding periods in one year is called compounding frequency. The compounding frequency affects both the present and future values of cash flows An investor can invest money with a particular bank and earn a stated interest rate of 13.20%; however, interest will be compounded quarterly. What are the nominal, periodic, and effective interest rates for this investment opportunity? Interest Rates Nominal rate Periodic rate Effective annual rate You want to invest $19,000 and...
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PLEASE SOLVE 3 TO 5 QUESTIONS. Question 2: Orange Credit Union expects an average annual growth...
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Please answer all parts A-D On January 1, 2018, Eastside Credit Union (ECU) issued 5%, 20-year...
Please answer all parts A-D
On January 1, 2018, Eastside Credit Union (ECU) issued 5%, 20-year bonds payable with face value of $200,000. These bonds pay interest on June 30 and December 31. The issue price of the bonds is 101. Journalize the following bond transactions: A (Click the icon to view the bond transactions.) (Assume bonds payable are amortized using the straight-line amortization method. Record debits first, then credits. Select explanations on the last line of the journal entry....
Question 25 (3.4 points) Your bank offers 3-year certificates of deposit with a stated rate of...
Question 25 (3.4 points) Your bank offers 3-year certificates of deposit with a stated rate of interest of 17.54 % p.a., compounded quarterly. Your cousin (who works at Acme Bank and Trust, a competitor) wants to know what stated rate of interest you would require from them in order to switch your business to their bank. Acme's CD's are compounded on a monthly basis. What is the minimum stated interest rate you should ask for from Acme in order to...
5. Suppose a CD (Certificate of Deposit) advertised an APR of 8%. Assuming the APR was the result of monthly compounding, find the effective annual yield to the nearest tenth of a percent. 8. The going rate for a home mortgage with a term of 30 years is 3.8%. The lending agency says that based on your income, your monthly payment could be $900. How much can you borrow? 9. Suppose you invest $5,000 in a savings account that pays...
D Question 28 3 pts Your 5 year bank Certificate of Deposit just matured and the account balance is $4,701.58. If the account earned 6.5% interest compounded continuously for the entire 5 year period what was the amount of your initial investment?
3. Nonannual compounding period The number of compounding periods in one year is called compounding frequency. The compounding frequency affects both the present and future values of cash flows An investor can invest money with a particular bank and earn a stated interest rate of 13.20%; however, interest will be compounded quarterly. What are the nominal, periodic, and effective interest rates for this investment opportunity? Interest Rates Nominal rate Periodic rate Effective annual rate You want to invest $19,000 and...
3) (15 points) A local credit union pays a market interest rate of 5% per year for long-term deposits. The current inflation rate is 2% per year. a) (5 points) If I invest some money in a long-term fund at the credit union, what is the real (inflation- free) interest rate I will be earning? b) (10 points) I open a new account today, deposit $10,000, and do not expect to make any deposits or withdrawals for the next 5...
PLEASE SOLVE 3 TO 5 QUESTIONS.
Question 2: Orange Credit Union expects an average annual growth rate of 16% for the next five years. If the assets of the credit union currently amount to $1.7 million, what will the forecasted assets be in five years? Question 3 A loan for $14320 with interest at 4.75% compounded semi-annually is repaid after 7 years. What is the amount of interest paid? Question 4: An investment of $6300.00 earns interest at 11.96% p.a....
Question 3 2 pts Wk3Hw_FV2 Sara has $5,990 to invest in a bank certificate of deposit for 9 years. The bank is paying 12% interest per year compounded monthly. How much will Sara's investment be worth at the end of the 9 year period? (round to 2 decimal places) Use the correct formula from below to solve this problem. **(1+r)^n x+(CF/(1+r)^1)+(CF/(1+r)^2)+(CF/(1+r)^3)+(CF/(1+r)^4).... x+SQRT(1-rin) Wk3Hw_FV2
Show a Score: 0 of 1 pt 5 of 5 (1 complete) HW Score: 20%, 1 of 5 pts E5-30 (book/static) Question Help Walliston direct prote ional costs wws: United Savings Bank (USB) is examining the profitability of its Premier Account, a combined savings and checking account. (Click the icon to view account information.) USB recently conducted an activity based costing study of its services. It assessed the following costs for six individual services. The use of these services in...
Please answer all parts A-D
On January 1, 2018, Eastside Credit Union (ECU) issued 5%, 20-year bonds payable with face value of $200,000. These bonds pay interest on June 30 and December 31. The issue price of the bonds is 101. Journalize the following bond transactions: A (Click the icon to view the bond transactions.) (Assume bonds payable are amortized using the straight-line amortization method. Record debits first, then credits. Select explanations on the last line of the journal entry....
Question 25 (3.4 points) Your bank offers 3-year certificates of deposit with a stated rate of interest of 17.54 % p.a., compounded quarterly. Your cousin (who works at Acme Bank and Trust, a competitor) wants to know what stated rate of interest you would require from them in order to switch your business to their bank. Acme's CD's are compounded on a monthly basis. What is the minimum stated interest rate you should ask for from Acme in order to...
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