Question
In your search for the best rate on a new-car loan, you note that various lenders quote rates with differing compounding frequencies. Your car dealer
In your search for the best rate on a new-car loan, you note that various lenders quote rates with differing compounding frequencies. Your car dealer offers financing at 7.5% compounded monthly. For you to be indifferent as to which lending rate to choose, what would the nominal rate be on a loan from another lender with interest compounded: a) Annually? b) Semiannually? c) Quarterly?
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Mutual Fund Industry Handbook
Authors: Gremillion
1st Edition
0471736244, 978-0471736240
