You have a savings account in which you leave the funds for one year without adding to or withdrawing from the account. Which would you rather have: a daily compounded rate of .035%, a weekly compounded rate of .305%, a monthly compounded rate of 1.25%, a quarterly compounded rater of 4.00%, a semiannually compounded rate of 88%, or an annually compounded rate of 15%?

What is the effective annual rate (EAR) of a mortgage that is advertised a 6.256.25% (APR) over the next twenty years and paid with quarterly payments?

What is the effective annual rate (EAR) of the mortgage at6.256.25%APR with quarterly payments?

Sam Hinds, a local dentist, is going to remodel the dental reception area and add two new workstations. He has contacted A-Dec, and the new equipment and cabinetry will cost $20,000. The purchase will be financed with an interest rate of 10% loan over10 years. What will Sam have to pay for this equipment if the loan calls for semiannual payments (22 per year) and monthly payments (12 per year)? Compare the annual cash outflows of the two payments. Why does the monthly payment plan have less total cash outflow each year?

What will Sam have to pay for this equipment if the loan calls for semiannual payments (22 per year)?

Matt Johnson delivers newspapers and is putting away $30 at the end of eachquarter from his paper route collections. Matt is11 years old and will use the money when he goes to college in 7years. What will be the value of Matt's account in7 years with his quarterly payments if he is earning 5.5%(APR),8 %(APR), or15 %(APR)?

What will be the value of Matt's account in 7 years with his quarterly payments if he is earning 5.5% (APR)?