Question
I need only answers within one and half hour. (1) A certificate of deposit (CD) offers a daily rate of 0.02% compounded daily. What is
I need only answers within one and half hour.
(1) A certificate of deposit (CD) offers a daily rate of 0.02% compounded daily. What is the nominal rate of interest? You can assume 365 days per year. Express your answer as a percentage between 0 and 100 rounded to the nearest tenth of a percent.
(2) A certificate of deposit (CD) offers a daily rate of 0.03% compounded daily. What is the effective annual rate of interest? You can assume 365 days per year. You should express your answer as a percentage between 0 and 100 rounded to the nearest tenth of a percent.
(3) "You have $11,300 in a savings account that has been paying 5.5% interest, compounded weekly. If you made one deposit when you opened the account exactly 8 years ago and made no other deposits after that, how much did you initially deposit in the account? Assume 52 weeks per year."
(4) "Bank A offers an interest of 7% compounded daily, while bank B offers continuous compounding at 6.87% APR. If you deposit $3,921 with each bank, what will be the difference in the two bank account balances after 2 years? Enter your answer as a positive number."
(5) "You are requesting a loan of $34,157, and you plan to repay the loan in equal payments on a monthly basis. If the nominal interest rate is 11.3% compounded monthly, how much do you need to pay every month in order to pay off the loan in 7 years?"
(6) "Suzan is considering buying a home for $340,000. If she makes a down payment of $64,000 and takes out a mortgage on the rest of the money at 7.49% compounded monthly for 8 years. What will be the principal payment for her 72th payment? (Assume she makes monthly payments)"
(7) "If the nominal interest rate is 9.9% compounded daily, what is the required quarterly payment to repay a loan of $23,000 in 7 years? Assume 91 days per quarter."
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started