A bank offers 7.30% compounded daily. What is is APR (or called ERA, after compounded interest rate) for investors?     7.57%     5.22%     11.67%     10.12%     13%     6.5%     8.11%     9.33%

Q: A bank's duration gap is 1.92, and the current interest rate used to value all of the bank's assets…

A: Duration gap shows the difference in the duration of assets and duration of liabilities and show…

Q: What is the effective rate of a credit card whose Annual Interest Rate is 28.99% and compounds…

A: Annual interest rate = 0.2899 or 28.99% Number of compounding in a year = 365 Effective rate = ?…

Q: An amount was borrowed from a bank at a simple interest rate of 12.41% and paid after 5 years and 7…

A: F = P(1+(R*T))   Where F = Future Value. P= Present Value R = Rate of Interest T = Time

Q: 1. A bank deposit of P10, 000 has a real value of P12,136.30 after 3 years. What is its actual…

A: Real value after 3 years = P 12,136.30 Inflation rate = 5% Period = 3 Years

Q: 1. For the year just ended, a firm had average accounts receivable of $90,000 and total credit sales…

A: Data given: Av. Accounts Receivable=$90,000 Credit sales=$700,000 Discount=1%   Required: Firm's…

Q: What real interest rate is offered by a savings account with a 13% nominal rate during a period of…

A: Nominal Interest Rate = 13% = 0.13Inflation Rate = 6% = 0.06

Q: Chase Bank offers your firm a discount interest loan at 9 percent for up to $33 million and, in…

A: Effective annual interest rate is the rate that you actually pay over the money received.Effective…

Q: answer must be correct

A: The first step is to calculate the Effective Annual Rate (EAR) for National Bank. The EAR is the…

Q: Eagle Bank has the following interest-sensitive assets and interest-sensitive liabilities. Amount…

A: Interest rate refers to the rate that is earned on investments or charged on liabilities.…

Q: Two banks pay simple interest on short-term deposits. Bank A pays 5% p.a. over 3 years, and Bank B…

A: Simple interest is quite simple and only there is interest on the pricipal amount and there is no…

Q: On a $10,000 principal investment, a bank offered interest rates of 3.45% on 270- to 364-day GIC's…

A: The investment in GIC earns fixed interest on the investment based on the applicable interest rate…

Q: If a bank has quarterly deposit interest expense of $1MM, an average deposit portfolio of $3.2Bn and…

A: Solution:- Interest bearing deposit cost for bank means the bank’s interest expense for its interest…

Q: Which of the following bank accounts has the highest effective annual return? An account that pays…

A: The objective of the question is to determine which of the given bank accounts has the highest…

Q: Suppose a savings account has a nominal rate of 3.83% and interest is compounded monthly. What is…

A: Effective annual rate is the rate of interest which will be calculated after considering of the…

Q: Your bank is offering a term deposit that will earn investors an EAR of 10.70%. Your manager asks…

A: EAR stands for the effective annual rate. It is the rate which takes into consideration the impact…

Q: A bank pays interest at the nominal rate of 8.3% per year. Find the following effective yields.…

A: Variables in the question:Nominal rate=8.3% per yearFormula for calculating effective yield is…

Q: The rates in one month’s time are revealed as follows:Term           % Sterling rate1 month…

A: Calculation and Comparison:Unhedged Rate:The 3-month rate after one month is 5.20-5.25%.Let's use…

Q: A T-Bill currently sells for $98.5000 per $100 of face value. It has 180 days remaining until…

A: A treasury bill is a kind of debt security issued by the government and private companies to the…

Q: If inflation is anticipated to be 6 percent during the next year, while the real rate of interest…

A: The nominal return is the sum of the inflation rate and the real rate that we can calculate using…

Q: bank offers personal loans at 4.7%p.a compounding monthly. The effective annual rate of interest…

A: Effective rate is rate of return after consider the impact of compounding on that and is more than…

Q: 21) If the APR is 12% on a credit card with monthly compounding, what is the EAR ((1+r) B) 12.68% C)…

A: EAR means Effective annual rate.It is calculated by following formula:-EAR =  - 1where,EAR  =…

Q: If the annual interest rate is 12.9% and the dollar amount compounds daily, you would ( a. multiply…

A: Data given: Annual Interest rate=12.9% compounded daily. (Annual means N=1 year)

Q: If a bank decided to charge you 7.70% compounded monthly, what is the effective annual rate? Round…

A: EAR, Effective Annual Rate- = {(1 + APR)/m}^m } - 1

Q: 4- Bank America offers a stated annual interest rate of 5.0 percent, compounded quarterly, while…

A: To understand in which bank you should deposit your money, we need to calculate Effective interest…

Q: A bank offers loans at a rate of 19% per year, compounded quarterly. How much is the effective…

A: Compound = n = Quarterly = 4Interest Rate = r = 19%

Q: A commercial bank is offering 15( 5)/(12)% interest on time deposits. What is its equivalent decimal…

A: The answer is given below

Q: What is the amount of the quarterly deposits A such that you will be able to withdraw the amounts…

A: Present value is the equivalent value of future money today based on time value of money and period…

Q: An investor purchases a 90-day bank bill with a face value of$1million at4.88%       .…

A: The yields on a bank bill are different at the time of purchase and sale. This will lead to a…

Q: A bank offers a lending rate of 10% p.a. compounded quarterly. What figure would they quote if they…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: A firm deposits some funds in a special account at 4.8% compounded monthly. What effective rate will…

A: The effective interest rate is the rate that is provided after the effects of compounding are taken…

Q: A bank pays interest at the nominal rate of 3.8% per year. What is the effective annual yield if…

A: Effective Annual Yield: It refers to the rate of return entitled to an investor for a period of…

Q: Your liabilities consist of $60,000 coming due in one year and $40,000 coming due in three years.…

A: Liability due in one year is $60,000 Liability due in three years is $40,000 The market interest…

Q: Which of the following bank accounts has the highest effective annual return? An account that pays…

A: When you take a loan then an interest rate is stated on the loan agreement. The stated rate is…

Q: 4. Non annual compounding period The number of compounding periods in one year is called compounding…

A: Nominal rate = 11.00%The periodic rate is The effective annual rate is