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If a savings bank pays 5.5% interest every 3 months, what are the annual nominal and effective interest rates?
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- What is the effective annual interest rate of a 8.4% bank loan compounded monthly?A bank charges interest rate of 5.50% on loans. The interest rate compounds monthly. What is the effective annual rate?Suppose you have received a credit card offerfrom a bank that charges interest at 1.4% per month,compounded monthly. What is the nominal interest(annual percentage) rate for this credit card? What isthe effective annual interest rate?
- What is the effective rate of interest if a bank specified a nominal rate of 20% compounded annually?A bank quotes you a nominal interest rate of 12%, compounded monthly, on a savings account. What is the effective annual rate? %What effective annual rate can a bank earn on an APR of 10.5 percent, compounded monthly? Can the excel and calculator solution be provided?
- A commercial bank offers you a credit card with an annual percentage rate APR = 9%, compounding monthly. What’s the credit card’s nominal annual rate?To payoff a loan of $1000 you need to make 40 payment of $36.56 per month. What rate of interest are you paying? What is the stated or quoted rate? What is the annual percentage rate? What is the effective annual rate? What rate is bank likely to use to state its rate?A bank offers 0.5% effective monthly interest. What is the effective annual rate with monthly compounding?
- A bank pays a simple interest rate of 4.1% on 30 to 179-day GICs of at least $100,000. What is the effective annualized rate of return:a) On a 40-day GIC?b) On a 160-day GIC?If a nine-month term deposit at a bank a simple interest rate of 9% per annum, how much will have to be deposited to earn $ 225 of interest?A lending institution charges interest at the rate of 3.5% per quarter, a. What is the nominal interest rate? b. What is the effective annual interest rate? c. What is the effective semiannual interest rate?