A local bank’s website offers an 18 month certificate of deposit for 1.95% interest compounded monthly,...
A local bank’s website offers an 18 month certificate of deposit for 1.95% interest compounded monthly, 1.99% APY. Is this bank violating the Truth in Lending Act?
What is the effective interest rate for a nominal interest rate of 9.49%, compounded daily?
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A local bank’s website offers an 18 month certificate of deposit
for 1.95% interest compounded monthly,...
Bank One offered a 10-year certificate of deposit (CD) at 4.8% interest compounded quarterly. On the...
Bank One offered a 10-year certificate of deposit (CD) at 4.8% interest compounded quarterly. On the same day on the Internet, First Bank offered a 10-year CD at 4.79% compounded monthly. Find the APY for each CD. Which bank paid a higher APY? The APY for the CD at Bank One is % (Type an integer or decimal rounded to three decimal places as needed.) The APY for the CD at First Bank is % (Type an integer or decimal...
please correct 8. Calculate the effective rate of interest on a certificate of deposit that offers...
please correct
8. Calculate the effective rate of interest on a certificate of deposit that offers a rate of interest of 7% per year, compounded semiannually =Bate FINANCIAL FUNCTION COMMANDS FV(RATE,NPER,PMT,PV) NPER(RATE,PMT, PV,FV)
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...
Susan decides to deposit $50,000 into a bank that offers 4.75% interest compounded monthly. After six...
Susan decides to deposit $50,000 into a bank that offers 4.75% interest compounded monthly. After six years, what will Susan's account total?
4) Townville Bank offers a savings account that pays 3.25% annual interest compounded monthly. a) What...
4) Townville Bank offers a savings account that pays 3.25% annual interest compounded monthly. a) What is the yield (APY) on this account? Round to the nearest hundredth of a percent. [5 pt] b) If Amy makes a deposit of $15,000 into this account, how much will be in her account after 8 years? [8 pt]
Your credit card statement indicates the interest charged is 12% compounded monthly on the outstanding balance.
Your credit card statement indicates the interest charged is 12% compounded monthly on the outstanding balance.(a) The nominal rate (APR) is (b) What is the effective rate of interest (APY)
Tucson Bank offers to lend you $50,000 at a nominal rate of 12%, compounded monthly. The loan (principal plus interest)...
Tucson Bank offers to lend you $50,000 at a nominal rate of 12%, compounded monthly. The loan (principal plus interest) must be repaid at the end of the year. Phoenix Bank also offers to lend you the $50,000, but it will charge an annual rate of 10.8%, with no interest due until the end of the year. How much higher or lower is the effective annual rate charged by Tucson versus the rate charged by Phoenix? Solve without Excel. Show...
2. Answer the following questions: (a) The Central Bank pays 4.1% compounded monthly on certain types...
2. Answer the following questions: (a) The Central Bank pays 4.1% compounded monthly on certain types of deposits. What is the effective annual rate of interest? (b) If interest is compounded daily, what nominal rate of interest compounded daily will maintain the same effective rate of interest in part (a)?
2. (10 pts) You borrow $40,000 from the local bank at 5% APR, compounded monthly on...
2. (10 pts) You borrow $40,000 from the local bank at 5% APR, compounded monthly on a 6-year loan but you want to pay for the loan with payments every four months. (a) What is your effective interest on your 4-month payment? (b) What is your payment made every four months? (c) What is the APY for your loan with your payments??
East Commercial Bank offers to lend you $40,000 at a nominal rate of 7.5%, compounded monthly....
East Commercial Bank offers to lend you $40,000 at a nominal rate of 7.5%, compounded monthly. The loan (principal plus interest) must be repaid at the end of the year. West Commercial Bank also offers to lend you the $40,000, but it will charge an annual rate of 8.0%, with no interest due until the end of the year. How much higher or lower is the effective annual rate charged by West Commercial Bank versus the rate charged by East...
Bank One offered a 10-year certificate of deposit (CD) at 4.8% interest compounded quarterly. On the same day on the Internet, First Bank offered a 10-year CD at 4.79% compounded monthly. Find the APY for each CD. Which bank paid a higher APY? The APY for the CD at Bank One is % (Type an integer or decimal rounded to three decimal places as needed.) The APY for the CD at First Bank is % (Type an integer or decimal...
please correct
8. Calculate the effective rate of interest on a certificate of deposit that offers a rate of interest of 7% per year, compounded semiannually =Bate FINANCIAL FUNCTION COMMANDS FV(RATE,NPER,PMT,PV) NPER(RATE,PMT, PV,FV)
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