Your bank is offering you an account that will pay 20% interest in total for a two-year deposit. Determine the equivalent discount rate for a period length of 1 year, 6 months, & 1 year?
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Your bank is offering you an account that will pay 20% interest in total for a two-year deposit. Determine the equivalent discount rate for a period length of 1 year, 6 months, & 1 year?
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- Consider a credit card with a balance of $7000 and an APR of 12.5%. If you want to make monthly payments in order to pay off the balance in 11 year, what is the total amount you will pay? Round your answer to the nearest cent, if necessary.Consider a credit card with a balance of $9000 and an APR of 16.99% . In order to pay off the balance in 3 years, what monthly payment would you need to make? Round your answer to the nearest cent, if necessary.Suppose you take a 6 year loan of $50,000 with an annual interest rate of 13% and monthly payments starting at the end of year 1. What are the monthly loan payments? Enter your response below.
- 3. Your bank is offering you an account that will pay 10% interest in total for a two-yeardeposit. Determine the equivalent discount rate for a period length of:a. Six months.b. One year.Suppose that you're planning a vacation and borrow $2,000 from a bank for one year at a stated annual interest rate of 14 percent, with interest prepaid (a discount interest loan). Also, assume that the bank requires you to maintain a compensating balance equal to 10 percent of the initial loan value. What effective annual interest rate are you being charged?Assume you make a single deposit of $1000 into a savings account that pays interest at 0.5% per month. If you want to know how much the accountwill be worth in 5 years, the only values you can use for i and n area. Effective i per month and n = 60b. Effective i per quarter and n = 30c. Effective i per semiannual period and n = 10d. Either (a) or (c)
- Your bank is offering you a mortgage loan for $100,000. It is a fixed rate loan at 4% per annum (APR). It has a 30 year tenor and requires monthly payments. What is your monthly payment? Round to the nearest $ and use the $ symbol.Your bank is offering you an account that will pay 25% interest (an effective two-year rate) in total for a two-year Determine the equivalent discount rate for the following periods: a. Six months b. One year c. One month (Note: Be careful not to round any intermediate steps less than six decimal places.) + a. Six months The equivalent discount rate for a period length of six months is%. (Round to two decimal places.) xample Get more help. A MacBook Pro P Clear all Final cSuppose you lend $11,500 to a friend at an APR of 10.00%. Your friend will pay you back beginning next month with 60 monthly installments. You can reinvest the payments you receive in your money market account at an APR of 1.10%, calculated monthly. a. How much will your friend pay you each month? ______________ b. How much will you have in your account at the end of 60 months? (to nearest $___________________ c. What is your effective annual return (EAR), _._ _%?______________
- You are given the option to borrow P5,000 you need for one year. Which of this will you pay lesser interest. To borrow from a friend at an interest rate of 1.5% month or a loan from a bank at a rate 18% per year?Suppose you want to borrow $90,000 and you find a bank offering a 20-year term for a loan of that amount, with an APR of 7%. Complete parts (a) and (b) below. (a) What are your monthly payments? PMT=$ (Round to the nearest cent as needed.) QuestionHow much should you deposit now into a certificate of deposit (CD) at a bank, if the CD matures 10 years from now, the interest rate is 3.75%, interest is compounded monthly, and you want to achieve $50,000? Give your answer to the nearest cent.