6. Kate earns 3.5% p.a. effective interest from her savings account. The inflation rate is 5.1% p.a. Use the exact version of the Fisher Equation. Which of the following is the correct real interest rate Kate earns from her savings account? (2 marks) A. 1.6% p.a. B. 1.55% p.a. C. -1.6% p.a. D. -1.52% p.a.

6. Kate earns 3.5% p.a. effective interest from her savings account. The inflation rate is 5.1% p.a. Use the exact version of the Fisher Equation. Which of the following is the correct real interest rate Kate earns from her savings account? (2 marks) A. 1.6% p.a. B. 1.55% p.a. C. -1.6% p.a. D. -1.52% p.a.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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rive loan is below. Payments of $1,987.26 are made monthly. Payment # Payment 1 1,987.26 2 1,987.26 3 1,987.26 Interest Debt Payment Balance 1,604.17 383.09 1,602.41 384.85 1,600.65 386.61 Provide your answer below: X Y Z Calculate the value of z, the balance of the loan at the end of month 3. Give your answer to the nearest dollar. Do not include commas or the dollar sign in your answer.
A saving account earns compound interest at an annual effective interest rate i. Given that d12,41 = 0.08, Find i1,51- %3D
Blake Hamilton has money in a savings account that earns an interest rate of 6.5% monthly. What is the effective rate of interest on Blake's savings. Select the correct response: 6.53% 6.697% O 7.2% 7%
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which one is correct please confirm? QUESTION 9 Your monthly statement from your bank credit card shows that the monthly rate of interest is 1.5%. What is the annual effective rate of interest you are being charged on your credit card? a. 18.64% b. 18.00% c. 29.74% d. 19.56%
a. Hamed deposit R.O (A + 130) in a B% account and compounded quarterly. At the same time Ismail deposit R.O (A + 160) in a D% account compounded monthly. Find the time that will take for the amounts in the two accounts to be equal? A=18 B=19 D=19
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What is the APR if the monthly rate of interest a credit card company charges on outstanding balances is 1.62%? Select one: O a. APR =(1.0162)^12) -1 = 0.2127, and APR = 21.27% O b. APR = ((1.0162)^7) - 1 = 0.1191, and APR = 11.91% O C. APR =((1.0162)^52) - 1 = 1.3063, and APR = 130.63%
You borrow money on a self liquidating installment loan (equal payments at the end of each year, each payment is part principal part interest) Loan amount Interest Rate $632,000 15.5% Life 49 years Date of Loan January 1, 2021 Use the installment method - not straight line Do NOT round any interrmediate numbers. Do NOT turn this into a monthly problem. Do NOT put in minus signs, answer all positive numbers.
Calculating Interest Using 360 days as the denominator, calculate interest for the following notes using the formula I = P x R × T. Round your answers to the nearest cent. Principal Rate Time Interest $4,100 6.00% 30 days 1,000 7.50 60 3,500 8.00 120 950 6.80 95 1,250 7.25 102 2,600 7.00 90
Calculating Interest Using 360 days as the denominator, calculate interest for the following notes using the formula I = P × R × T. Round your answers to the nearest cent. Principal Rate Time Interest $4,200 6.00% 30 days $fill in the blank 1 1,000 7.50 60 $fill in the blank 2 4,400 8.00 120 $fill in the blank 3 950 6.80 95 $fill in the blank 4 1,250 7.25 102 $fill in the blank 5 2,400 7.00 90 $fill in the blank 6

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