Question
I need only answers within 1 hour. (1) A bank offers a monthly interest rate of 2.04% compounded monthly. What is the nominal interest rate?
I need only answers within 1 hour.
(1) A bank offers a monthly interest rate of 2.04% compounded monthly. What is the nominal interest rate? Enter your answer as a percentage between 0 and 100.
(2) Republic Finance offers money at 1.31% per month compounded monthly. What is the effective annual interest rate? Express your answer as a percentage between 0 and 100.
(3) You make monthly payments on a loan. What is the effective monthly interest rate for this loan with a 5.6% nominal annual interest rate if the loan is compounded continuously? Enter your answer as a percentage (rounded to the nearest hundreth of a percent) between 0 and 100.
(4) Republic Finance offers money at 1.52% per month compounded monthly. Assume Republic Finance changes to continuous compounding but decides to keep the ANNUAL NOMINAL INTEREST rate the same as with the monthly compounding. How many years will it take for an investment to quadruple with this continuous compounding? (Your answer can be a decimal.)
(5) "Congratulations! Your offer for a house has been accepted. You will need to borrow $223,000. The bank can finance the loan through two options: a 15-year mortgage at 4.41% APR and a 30-year mortgage at 5.29% APR.Both mortgages have monthly compounding.What is the difference in monthly payments between these two options? Express your answer in terms of positive dollars."
(6) "Suzan is considering buying a home for $441,000. If she makes a down payment of $54,000 and takes out a mortgage on the rest of the money at 5.05% compounded monthly for 11 years, what will be the interest for payment number 88? Assume she makes monthly payments."
(7) "What is the required monthly payment to repay a loan of $57,000 in 4 years if the interest rate is 9.25% coumpounded daily? (Assume 30 days per month.)"
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