question 55

52. Effective Interest Rate. First National Bank pays 6.2% interest compounded semiannually Second National Bank pays 6% interest compounded monthly. Which bank offers the highe effective annual interest rate? (LOS-4) 53. Loan Payments. You take out an $8,000 car loan that calls for 48 monthly payments starti, after 1 month at an APR of 10%. (LO5-4) a. What is your monthly payment? b. What is the effective annual interest rate on the loan? c. What if the payments are made in four annual year-end installments? What annual pay would have the same present value as the monthly payment you calculated? 54. Continuous Compounding. How much will $100 grow to if invested at a continuously pounded interest rate of 10% for 8 years? What if it is invested for 10 years at 8%? (LOS 55. Effective Interest Rate. Find the effective annual interest rate for each case. (LO5-4) APR 12% Compounding Period 1 month 10 56. Effective Interest Rate. Find the APR (the stated interest rate) for each case. (LOS