bank offers a loan that will require you to pay 13% interest compounded semiannually. Which of the following is closest to the EAR charged by the bank:

a. 11.8% b. 12.91% c. 10.74% d. 13.42%

A house costs $139,000. It is to be paid off in exactly ten years, with monthly payments of $1,610.33. What is the APR (%) of this loan? Answer to two decimal places? Answer:

What is the real interest rate given a nominal rate of 6.1% and an inflation rate of 1.8%? a. 6.1% b. 4.2% c. 7.9% d. 4.3%

Which of the following computes the growth in purchasing power? a. growth of money + growth of prices b. (1 + real rate) / (1 + nominal rate) c. (1 + inflation rate) / (1 + nominal rate) d. growth of money / growth of prices