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 union is offering a 5.1% APR mortgage with
monthly compounding (i.e., you pay them
once a month). A regional bank nearby is offering a 5.0% APR
mortgage with bi-monthly compounding
(i.e., you pay them twice a month). Which is the cheaper
mortgage?
4. You just received a bonus at work and you need to put it in a
savings account until you figure out what
you want to do with the money. The local bank offers an account
that pays 3% per quarter compounded
quarterly. The local credit union offers an account with a 12% APR
and monthly compounding. A new
online bank offers an account with an 11.9% APR and daily
compounding. Which should you choose?
(For simplicity, assume 360 days—12 months of 30 days each—per
year).
5. A credit card company charges its customers a 17.89% APR with
continuous compounding. Calculate
the APY using (a) the continuous compounding formula in the
textbook, (b) the non-annual compounding
formula in the FE Reference Handbook with m = 1000, and (c) the
non-annual compounding formula
in the FE Reference Handbook with m = 10,000.
1.
What is the APR for this credit card=0.04%*360=14.40%
What is the APY=((1+0.04%)^360)-1=15.49%
the above is answer..
we do only one question based on Chegg rule
1. My credit card charges interest of 0.04% per day compounded daily. (a) What is the...
5. A credit card company charges its customers a 17.89% APR with continuous compounding. Calculate the APY using (a) the continuous compounding formula in the textbook, (b) the non-annual compounding formula in the FE Reference Handbook with m = 1000, and (c) the non-annual compounding formula in the FE Reference Handbook with m = 10,000.
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)
3.2 If your credit card calculates interest based on 19.25% APR, compounded monthly: (a) What are your monthly interest rate and annual effective interest rate? (b) If your current outstanding balance is $3,400 and you skip payments for four months, what would be the total balance four months from now?
10. You have been offered a credit card with an interest rate of 15% APR compounded monthly. This is equivalent to an effective annual rate (EAR) of: A. 18.39% B. 1.16% C. 16.08% D. 15.25%
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?...
QUESTION 5 Suppose you want to buy a house that costs $750,000. You are required to put 10% down, which means the amount to be borrowed is 90% of the price of the house. If you want a 30 year mortgage, and the borrowing rate is 5.6% APR compounded monthly, what would be your monthly payment? (Answer to the nearest penny) 5 points QUESTION 6 Suppose you want to buy a car that costs $17,000. If the dealer is...
16 Credit Card Offers Randy just cancelled his credit card with a large bank. A week later, a representative of the bank called Randy with an offer of a "better" credit card that will advance Randy $2,000 when he accepts it. Randy could not refuse the offer and several days later receives a check for $2,000 from the bank. With this money, Randy decides to buy a new computer. At the next billing cycle (a month later), the $2,000 advance...
Assume you have a credit card that has an interest rate of 24% APR, compounded monthly. Assume you have a credit balance of $5,000. What would your monthly payment need to be to pay off the balance in 3 years?
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]