Make sure to show calculations on the questions that ask to show calculations

Chapter 5 - Homework Assignment #s! Due October 18, 2020 10 questions. 1 point per question. 10 total points possible (however possible 4 POINTS EXTRA CREDIT See #10). Note, some questions have more than one part. Answer all parts precisely and succinctly. Questions drawn from Chapters 5. I have given page numbers for most to help you. Chapter 5 - Discounted Cash Flow (for practice, study Chapter Review Self Test test questions on pages 151-152 for examples with answers) 1. Define: a) Effective interest rate (EAR) and define b) Annual Percentage Rate (APR) p142 2. Calculating Effective Annual Rate (EAR): First National Bank charges 10,1 percent compounded monthly on its business loans. First United Bank charges 10.3 percent compounded semiannually. As a potential borrower, which bank would you go to for a new loan? Show calculations. 3. Calculating Annual Percentage Rate (APR): Vandermark Credit Corp. wants to earn an effective annual return on its consumer loans of 14.2 percent per year. The bank uses daily compounding on its loans. What interest rate is the bank required by law to report to potential borrowers? Explain why this rate is misleading to an uninformed borrower. 4. What is an Annuity? pg132 5. What is a Perpetuity? What's a consul? P138 Print Layout View Sec Pages 1 of 2 Words: O of 294 book 6. Define: a) Stated interest rate and b) Quoted interest rate 7. What is a pure discount loan? P145 8. What is an interest rate only loan? What is a balloon payment? 9. What does it mean when we say the borrower is amortizing her loan? P146-147 10.Payday loans? Are they always ethical? Why or why not? Explainl See p144. What is usury? (good explanation and analysis brings up to 1 regular and 4 extra credit points)