Question
I need only answers within one and half hour. (1) A bank offers a monthly interest rate of 1.85% compounded monthly. What is the nominal
I need only answers within one and half hour.
(1) A bank offers a monthly interest rate of 1.85% compounded monthly. What is the nominal interest rate? Enter your answer as a percentage between 0 and 100.
(2) A certificate of deposit (CD) offers a daily rate of 0.01% compounded daily. What is the effective monthly interest rate? You should assume 30 days per month. Express your answer as percentage between 0 and 100 rounded to the nearest hundreth of a percent.
(3) "If you invest $5,000 every year in an account that pays 4.7% APR, compounded daily, how much will you have in the account at the end of 14 years? Assume you make the first deposit exactly one year from now, and you make a total of 14 deposits."
(4) "Bank A offers an interest of 8% compounded daily, while bank B offers continuous compounding at 7.87% APR. If you deposit $5,653 with each bank, what will be the difference in the two bank account balances after 3 years? Enter your answer as a positive number."
(5) "To purchase a new car, you borrow $30,000 for 7 years at the rate of interest of 10.5% APR compounded monthly, and you make monthly car payments. How much interest do you pay on the 11th payment?"
(6) "Suzan is considering buying a home for $290,000. If she makes a down payment of $74,000 and takes out a mortgage on the rest of the money at 6.99% compounded monthly for 19 years. What will be the principal payment for her 152th payment? (Assume she makes monthly payments)"
(7) "If the nominal interest rate is 8.3% compounded daily, what is the required quarterly payment to repay a loan of $35,000 in 7 years? Assume 91 days per quarter."
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