Suppose your credit card issuer states that it charges a 19.50% nominal annual rate, but you...
Suppose your credit card issuer states that it charges a 19.50% nominal annual rate, but you must make monthly payments, which amounts to monthly compounding. What is the effective annual rate?
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Suppose your credit card issuer states that it charges a 19.50%
nominal annual rate, but you...
Monica sees Ross’s credit card bill and notices that he has a balance of $7,650. She...
Monica sees Ross’s credit card bill and notices that he has a balance of $7,650. She wants to try and make Ross see that his credit card company is really imposing a huge drag on his wallet. She starts by pointing out the the card charges a nominal 23.75% rate, but since Ross must make monthly payments, this amounts to monthly compounding. What is Ross’s effective rate? A). 28.90% B). 30.23% C). 26.51% D). 26.78% E). 28.37%
In the description of the terms of your credit card, it states that the card has...
In the description of the terms of your credit card, it states that the card has an APR of 17% with monthly compounding, what is the effective interest rate (on an annual basis)? A 17.00% О в 18.39% С 19.24% O D 17.3196
Monica sees Ross’s credit card bill and notices that he has a balance of $7,650. She...
Monica sees Ross’s credit card bill and notices that he has a balance of $7,650. She wants to try and make Ross see that his credit card company is really imposing a huge drag on his wallet. She starts by pointing out the the card charges a nominal 23.75% rate, but since Ross must make monthly payments, this amounts to monthly compounding. What is the formula for Ross’s effective rate and what should Monica say to Ross to convince him...
Q1: You charged $1,000 on your credit card for Christmas presents. Your credit card company charges...
Q1: You charged $1,000 on your credit card for Christmas presents. Your credit card company charges you 26% annual interest. If you make the minimum payments of $25 per month, how long will it take ( to the nearest month) to pay off your balance? Q2: At 5 percent compounded monthly, how long will it take to double your money?
Q1: You charged $1,000 on your credit card for Christmas presents. Your credit card company charges...
Q1: You charged $1,000 on your credit card for Christmas presents. Your credit card company charges you 26% annual interest. If you make the minimum payments of $25 per month, how long will it take ( to the nearest month) to pay off your balance? Q2: At 5 percent compounded monthly, how long will it take to double your money?
PAYING OFF CREDIT CARDS Simon recently received a credit card with an 13% nominal interest rate,...
PAYING OFF CREDIT CARDS Simon recently received a credit card with an 13% nominal interest rate, with the card, he purchased an Apple iPhone 5 for $460. The minimum payment on the card is only $20 per month. a. If Simon makes the minimum monthly payment and makes no other charges, how many months will it be before he pays off the card? Do not round intermediate calculations. Round your answer to the nearest month. month(s) b. If Simon makes...
Suppose that the nominal annual interest rate on an investment is 12%. Calculate the effective interest...
Suppose that the nominal annual interest rate on an investment is 12%. Calculate the effective interest rate if compounding occurs continuously. Suppose that the nominal annual interest rate on an investment is 12% Calculate the effective interest rate if compounding occurs monthly.
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...
E. $24.20 Fou are paying an effective annual rate of 20 percent on your credit card....
E. $24.20 Fou are paying an effective annual rate of 20 percent on your credit card. The interest is compounded quarterly. What is the annual percentage rate on this account (calculate the APR using the effective quarterly rate)? A. 17.50 percent B. 18.00 percent C. 18.65 percent D. 18.98 percent E. 19.50 percent 14. The present value of the following cash flow stream is $5.933.86 when discounted at 6 percent annually. What is the value of the missing cash flow?...
E. $24.20 Fou are paying an effective annual rate of 20 percent on your credit card....
E. $24.20 Fou are paying an effective annual rate of 20 percent on your credit card. The interest is compounded quarterly. What is the annual percentage rate on this account (calculate the APR using the effective quarterly rate)? A. 17.50 percent B. 18.00 percent C. 18.65 percent D. 18.98 percent E. 19.50 percent 14. The present value of the following cash flow stream is $5.933.86 when discounted at 6 percent annually. What is the value of the missing cash flow?...
In the description of the terms of your credit card, it states that the card has an APR of 17% with monthly compounding, what is the effective interest rate (on an annual basis)? A 17.00% О в 18.39% С 19.24% O D 17.3196
PAYING OFF CREDIT CARDS Simon recently received a credit card with an 13% nominal interest rate, with the card, he purchased an Apple iPhone 5 for $460. The minimum payment on the card is only $20 per month. a. If Simon makes the minimum monthly payment and makes no other charges, how many months will it be before he pays off the card? Do not round intermediate calculations. Round your answer to the nearest month. month(s) b. If Simon makes...
Suppose that the nominal annual interest rate on an investment is 12%. Calculate the effective interest rate if compounding occurs continuously. Suppose that the nominal annual interest rate on an investment is 12% Calculate the effective interest rate if compounding occurs monthly.
E. $24.20 Fou are paying an effective annual rate of 20 percent on your credit card. The interest is compounded quarterly. What is the annual percentage rate on this account (calculate the APR using the effective quarterly rate)? A. 17.50 percent B. 18.00 percent C. 18.65 percent D. 18.98 percent E. 19.50 percent 14. The present value of the following cash flow stream is $5.933.86 when discounted at 6 percent annually. What is the value of the missing cash flow?...
E. $24.20 Fou are paying an effective annual rate of 20 percent on your credit card. The interest is compounded quarterly. What is the annual percentage rate on this account (calculate the APR using the effective quarterly rate)? A. 17.50 percent B. 18.00 percent C. 18.65 percent D. 18.98 percent E. 19.50 percent 14. The present value of the following cash flow stream is $5.933.86 when discounted at 6 percent annually. What is the value of the missing cash flow?...
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