Question
1) 2) You have found three investment choices for a one-year deposit: 10.3% APR compounded monthly, 10.3% APR compounded annually, and 9.6% APR compounded daily.
1)2) You have found three investment choices for a one-year deposit: 10.3% APR compounded monthly, 10.3% APR compounded annually, and 9.6% APR compounded daily. Compute the EAR for each investment choice. (Assume that there are 365 days in the year.) (Note: Be careful not to round any intermediate steps less than six decimal places.)
3) You have just taken out a $30,000 car loan with a 4% APR, compounded monthly. The loan is for five years. When you make your first payment in one month, how much of the payment will go toward the principal of the loan and how much will go toward interest?(Note: Be careful not to round any intermediate steps less than six decimal places.) When you make your first payment, $enter your response here will go toward the principal of the loan and$enter your response here will go toward the interest.
4)PLEASE ANSWER ALL OF THEM INCLUDING #1 A) B) AND C)
Your bank is offering you an account that will pay 20% interest (an effective two-year rate) in total for a two-year deposit. Determine the equivalent discount rate for the following periods: a. Six months b. One year c. One month (Note: Be careful not to round any intermediate steps less than six decimal places.) You are considering two ways of financing a spring break vacation. You could put it on your credit card, at 12% APR, compounded monthly, or borrow the money from your parents, who want an interest payment of 7% every si months. Which is the lower rate? (Note: Be careful not to round any intermediate steps less than six decimal places.) Your bank is offering you an account that will pay 20% interest (an effective two-year rate) in total for a two-year deposit. Determine the equivalent discount rate for the following periods: a. Six months b. One year c. One month (Note: Be careful not to round any intermediate steps less than six decimal places.) You are considering two ways of financing a spring break vacation. You could put it on your credit card, at 12% APR, compounded monthly, or borrow the money from your parents, who want an interest payment of 7% every si months. Which is the lower rate? (Note: Be careful not to round any intermediate steps less than six decimal places.)Step by Step Solution
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