A bank pays interest monthly with an EAR of 13%. What is the periodic interest rate applicable per month? A. 2.04% B. 1.22% C. 1.02% D. 0.82%
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A: In this question we need to calculate the effective annual interest rate i.e. EAR.
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- A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,3833. A bank offers an account with an APR of 5.8% and an EAR of 5.88%. How does the bank compound interest for this account?A) weekly compoundingB) monthly compoundingC) semiannual compoundingD) annual compoundingA bank offers a loan that will requires you to pay 8% interest compounded semiannually. Which of the following is closest to the EAR charged by the bank? A. 8.16% B. 9.79% C. 6.53% D. 16.32%
- A bank quotes you a nominal interest rate of 12%, compounded monthly, on a savings account. What is the effective annual rate? %A financing company charges 1.5% per month on a loan. Find the equivalent effective rate of interest. 19.5618% 18.5618% 17.5618% 16.5618%A bank charges 11% simple interest in advance (that is 11% bank discount) on short-term loans. Find the sum received by the borrower who requests (i) GH¢900 for 90days, (ii) GH¢1500 from May 3 to October 15.
- A bank offers personal loans at 4.7%p.a compounding monthly. The effective annual rate of interest (EAR) is ( to the nearest two decimal places): Question 17Answer a. 4.76% b. 4.80% c. 4.78% d. 0.39%A bank charges 11% simple interest in advance (that is 11% bank discount) on short term loans. Find the sum received by the borrower who request (i) GH¢900 for 90days, (ii) GH¢1500 from May 3 to October 15.A bank charges a simple discount at 11% interest rate on short term loans. Find the sum received by the borrower who request (i) GH¢900 for 90days, (ii) GH¢1500 from May 3 to October 15.
- A bank charges interest rate of 5.50% on loans. The interest rate compounds monthly. What is the effective annual rate? a) 0.46% b) 5.50% c) 5.23% d) 5.64%The rates offered by a bank on deposits between $10,000 and $24,999 are shown in the following table: Term 180 to 269 days 270 to 364 days Rate. 3.15% 3.45% How much more will an investor earn from a $10,000 investment in a 364-day GIC than from two consecutive 182-day GICS? Assume that the interest rate on 180- to 269-day GICS will be the same on the renewal date as it is today. Remember that both the principal and the interest from the first 182-day GIC can be invested in the second 182-day GIC. (Use 365 days a year. Do not round the intermediate calculations. Round your final answer to 2 decimal places.) An investor will earn $ moreFirst Bank of Midesto Medeque pays a 6.01% nominal rate of interest compounded weekly. What is the effective rate of interest?