Question
4. (1 point) You are offered a line of credit with a quoted interest rate of 30% with daily compounding. What is your effective annual
4. (1 point) You are offered a line of credit with a quoted interest rate of 30% with daily compounding. What is your effective annual interest rate? Round to the nearest 0.01%. 5. (1 point) You are told that if you invest $5,000 per year for 35 years you will have accumulated $1,000,000. What is the annual rate of return on the latter investment? Round to the nearest 0.01%. 6. (1 point) You plan to purchase a car that costs $42,100. You deposit a down payment of $4,000 and finance the remaining amount over a period of 5 years. Your quoted annual rate is 9.30% compounded monthly. What will your monthly car payment be? Round to the nearest $0.01. 7 (1 point) How much must you donate today if you wish to establish a scholarship of $10,000 per year, forever? Assume the proceeds can remain invested at an annual interest rate of 3.50%. Round to the nearest $0.01.
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