1.
EAR = [(1 +stated rate/no. of compounding periods) ^no. of compounding periods - 1]* 100 |
Effective Annual Rate = ((1+9.15/365*100)^365-1)*100 |
Effective Annual Rate% = 9.58 |
EAR = [(1 +stated rate/no. of compounding periods) ^no. of compounding periods - 1]* 100 |
Effective Annual Rate = ((1+9.16/4*100)^4-1)*100 |
Effective Annual Rate% = 9.48 |
First National Bank offers two-year CDs at 9.15% compounded daily, and citywide savings offers two-year CDs...
Solve the following word problem by using Table 11-1. The First National Bank is offering a 5-year certificate of deposit (CD) at 4% interest compounded quarterly; Second National Bank is offering a 5-year CD at 5% interest compounded annually. Round percentage answers to two decimal places. Round dollars to the nearest cent. Do not round intermediate calculations. Click here for Table 11-1 a. If you were interested in investing $6,000 in one of these CDs, calculate the compound amount of...
First National Bank pays 6.1% interest compounded semiannually. Second National Bank pays 6% interest compounded monthly. a. Calculate the effective annual rate for each bank. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) b. Which bank offers the higher effective annual rate?
A bank offers a savings account with the interest rate of 9% compounded daily. What is the effective interest rate? Use 360-day year.
A local bank offers services that national banks offer, such as savings checking accounts, loans, CDs and safety deposit boxes. To attract customers, the bank differentiates itself through its friendly personal service, local involvement with the community, and fee-free ATMs around the region. Which pricing model would be the best choice for the local bank to choose?
Question 11 (1 point) First National Bank charges 4.4% compounded daily on its business loans. First United Bank charges 4.4% compounding quarterly. As a potential borrower, which bank would you go to for a loan and why? a) First United Bank because you want to pay more interest on your loan. Ob) First National Bank because you want to pay less interest on your loan. Oc) First United Bank because you want to pay less interest on your loan. d)...
Continental Bank advertnes capital savings 59% compounded annually while TD Canada Trust offers premium savings of 67% compounded monthly Suppose you have $1000 to invest for two years Which deposit will cam more interest? What is the difference in the amount of interest? The Continental Bank savings account will earn more interest The difference is s Round the finalwer to the nearest contended. Round all intermediate values to six decimal places as needed)
First National Bank charges 13.9 percent compounded monthly on its business loans. First United Bank charges 14.2 percent compounded semiannually. Calculate the EAR for First National Bank and First United Bank. (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) EAR First National % First United % As a potential borrower, which bank would you go to for a new loan? First United bank or First National bank ?
Bucher Credit Bank is offering 5.9 percent compounded daily on its savings accounts. Assume that you deposit $5,600 today. How much will you have in the account in 4 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Use 365 days in a year.) Future value $ How much will you have in the account in 8 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16....
Spartan Credit Bank is offering 7.4 percent compounded daily on its savings accounts. You deposit $5,800 today. a. How much will you have in the account in 6 years? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. How much will you have in the account in 11 years? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,...
0 The Continental Bank advertises capital savings at 5.8% compounded semi-annually while TD Canada Trust offers premium savings at 5.7% compounded monthly. Suppose you have $3000 to invest for two years. (a) Which deposit will earn more interest? (b) What is the difference in the amount of interest? (a) The savings account will earn more interest (b) The difference is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as...