Question
On January 1, 2017, Mr. Jim Henry deposited P 1,000,000 in Metro Filipino Bank. The certificate of deposit provides that Mr. Henry earns monthly interest
On January 1, 2017, Mr. Jim Henry deposited P 1,000,000 in Metro Filipino Bank. The certificate of deposit provides that Mr. Henry earns monthly interest rate of 0.75%.
1. What is the Annual Percentage Rate of Interest or Coupon rate?
2. How much is the total interest earned by Mr. Henry as of December 31, 2017, if the agreement does not consider compounding?
3. What is the Annual Percentage Yield?
4. How much is the total interest earned by Mr. Henry as of December 31, 2017, if the agreement considers compounding?
Step by Step Solution
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1 Annual Percentage Rate APR or Coupon Rate The annual interest rate APR is given as 075 per month T...
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
10th edition
978-1337276337, 1337276332, 978-1337517546, 1337517542, 978-1337491471
